Synergetics USA, Inc. (NASDAQ: SURG), a medical device company that designs, manufactures, and markets innovative microsurgical instruments for ophthalmic and neurosurgical applications, announced its results for the second quarter ended January 31, 2010. The Company reported second quarter 2010 sales of $13.0 million and net income of $877,000.

Second Quarter Results

Second quarter 2010 sales were $13.0 million compared with $13.7 million in the second quarter of 2009. The decrease in second quarter sales from last year was due primarily to reduced sales of neurosurgical products.

* Ophthalmic sales rose 4.5% to $7.8 million compared with the second quarter of fiscal 2009. Domestic ophthalmic sales increased 0.7% and international ophthalmic sales were up 10.1%. The growth in ophthalmic sales benefitted from higher volume of disposable products in both domestic and international markets, partially offset by a decline in capital equipment sales compared with fiscal 2009. International sales growth was driven by the expansion of the Company’s direct sales force in Europe since last year.
* Neurosurgical sales declined 25.9% to $2.8 million in the second quarter of fiscal 2010 compared with the same period in 2009. Domestic neurosurgical sales declined 20.9% and international neurosurgical sales were down 33.9% compared with the second quarter of fiscal 2009 due to Omni generators and handpieces being on backorder from the manufacturer during the quarter.
* Sales to marketing partners rose 4.0% to $2.4 million compared with the second quarter of the prior year, primarily due to higher sales of disposable product lines and royalty payments. Sales to Codman & Shurtleff, Inc. (“Codman”) rose 10.4% to $1.6 million in the second quarter and benefitted from higher domestic sales of Synergetics’ proprietary disposable bipolar biceps under a new exclusive contract that was effective December 1, 2009. The contract extends Codman’s exclusive sale of the disposable bipolar forceps to international markets effective February 1, 2010, after the close of Synergetics’ second fiscal quarter.

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