Surmodics, Inc (NASDAQ:SRDX) Q2 2023 Results Conference Call April 26, 2022 8:00 AM ET

Company Participants

Gary Maharaj - President and Chief Executive Officer

Timothy Arens - Chief Financial Officer

Conference Call Participants

Brooks O’Neil - Lake Street Capital Markets

Michael Petusky - Barrington Research

James Sidoti - Sidoti & Company

Operator

Welcome everyone to Surmodics’ Second Quarter and Fiscal Year 2023 Earnings Call. Please note that this call is being webcast. The webcast is accessible through the Investor Relations section of the Surmodics’ website at www.surmodics.com where an audio replay will be archived for future reference. An earnings press release disclosing Surmodics’ quarterly results was issued earlier today and is available on the company’s website as well.

Before we begin, I would like to remind everyone that remarks and responses to your questions today, on today’s call may contain Forward-Looking Statements. These forward-looking statements are covered under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 and include statements regarding Surmodics’ future financial and operating results or other statements that are not historical facts.

Please be advised that actual results could differ materially from those stated or implied by Surmodics’ forward-looking statements, resulting from certain risks and uncertainties, including those described in the Company’s SEC filings. Surmodics disclaims any duty to update or revise these forward-looking statements as a result of new information, future events, developments or otherwise.

This call will also include references to non-GAAP measures, because Surmodics believes they provide useful information for investors. Today’s earnings release contains reconciliation tables to GAAP results.

I would now like to turn the call over to Mr. Gary Maharaj, Surmodics President and Chief Executive Officer. Please go ahead, sir.

Gary Maharaj

Thank you operator, and welcome everyone to our earnings call for the second quarter of fiscal year 2023. I will start my remarks today with a brief overview of our second quarter revenue performance.

We generated a total revenue of $27.2 million in the second quarter of fiscal 2023, representing growth of 4% year-over-year. Our total revenue growth was driven by our revenue in medical devices, which increased 7% year-over-year, offsetting a 2% decrease in In-Vitro diagnostics or IVD revenue.

Looking at these two areas of our businesses more closely, in our medical device segment of performance was almost exclusively driven by product sales, which increased 23% year-over-year, with significant contributions from sales of our pounds and sublime products, as well as from our performance coding region. Specifically, sales of our pounds and sublime products contributed more than half of the medical revised revenue product sales growth we saw in this quarter.