Boston Business Journal August 13, 2003

 

After acquisitions, CardioTech posts first profit
Boston Business Journal
CardioTech International Inc., the Woburn company that manufactures medical grade plastics for implantable medical devices, said on Wednesday that it posted a profit in its first fiscal quarter of 2004 and rang up a hefty increase in sales.

CardioTech tallied a profit of $83,000 in the quarter, reversing a loss of $171,000 in the prior-year quarter. Revenue, which reached $5.5 million in the three months ended June 30 easily outdistanced the $802,000 the company took in a year earlier.

CardioTech credited the revenue boost to the acquisition of Gish Biomedical, which added $4,359,000 in the period. And sales continued to grow at the CDT subsidiary -- $861,000 for the quarter, compared with $480,000 for the comparable prior-year period

Dr. Michael Szycher, chairman and CEO of CardioTech pointed to "superb" execution by management as key to turning in an operating profit, the company's first. "Fundamentally, we are in excellent condition," Szycher said in a prepared statement. "With no debt, a strong cash balance and now profitability, we are poised for continued top and bottom line growth."

Szycher said the company is anticipating the launch of wound dressing technologies, tapping what the company believes is a $300 million market.

CardioTech is also developing a synthetic coronary artery bypass graft that addresses a potential market of $1.5 billion, the company said.