Surmodics Inc
NASDAQ:SRDX
Surmodics Inc
Surmodics, Inc. engages in the provision of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic immunoassay tests and microarrays. The company is headquartered in Eden Prairie, Minnesota and currently employs 389 full-time employees. The firm operates through two segments: Medical Device and In Vitro Diagnostics (IVD). The Medical Device segment consists of surface modification coating technologies to improve access, deliverability and predictable deployment of medical devices, as well as drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device, with end markets that includes coronary, peripheral, neurovascular and structural heart, among others. The IVD segment designs, develops and manufactures component products and technologies for diagnostic immunoassay, as well as molecular tests and biomedical research applications, with products that include protein stabilization reagents, substrates, surface coatings and antigens.
Surmodics, Inc. engages in the provision of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic immunoassay tests and microarrays. The company is headquartered in Eden Prairie, Minnesota and currently employs 389 full-time employees. The firm operates through two segments: Medical Device and In Vitro Diagnostics (IVD). The Medical Device segment consists of surface modification coating technologies to improve access, deliverability and predictable deployment of medical devices, as well as drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device, with end markets that includes coronary, peripheral, neurovascular and structural heart, among others. The IVD segment designs, develops and manufactures component products and technologies for diagnostic immunoassay, as well as molecular tests and biomedical research applications, with products that include protein stabilization reagents, substrates, surface coatings and antigens.
Revenue Outperformance: Surmodics delivered Q2 revenue of $32 million, up 18% year-over-year and $2.5 million above its prior guidance range.
Profitability Improvement: The company moved from a GAAP net loss to a GAAP net income, with an $8 million improvement year-over-year and $4.8 million in adjusted EBITDA.
Guidance Raised: Full-year revenue guidance increased to $122–124 million (from $113–117 million previously), and expected loss per share guidance improved.
Medical Device Growth: Medical Device segment revenue rose 26% to $24.8 million, driven by 40% growth in product sales, especially from the SurVeil DCB and Pounce thrombectomy products.
Strong Cash Flow: Operating cash flow was $7.4 million in the quarter, aided by royalty catch-up payments and a $3.4 million tax refund.
New Product Launches: Full commercial launches of Pounce Venous and Pounce LP thrombectomy systems were announced, with positive physician feedback.
Improved Margin Outlook: Product gross margin guidance was raised to the mid- to high-50% range, reflecting early benefits from scaling operations.
