Haemonetics Reports Second Quarter Fiscal 2013 Revenue Up 22%, Organic Revenue Up 6% and Adjusted EPS of $0.90, Reaffirms Fiscal

Haemonetics Reports Second Quarter Fiscal 2013 Revenue Up 22%, Organic Revenue
Up 6% and Adjusted EPS of $0.90, Reaffirms Fiscal 2013 Guidance and Announces
                           Two-For-One Stock Split

PR Newswire

BRAINTREE, Mass., Oct. 29, 2012

BRAINTREE, Mass., Oct. 29, 2012 /PRNewswire/ --Haemonetics Corporation (NYSE:
HAE) today reported second quarter 2013 net revenue of $218.2 million, up 22%,
GAAP net income of $6.5 million, down 53%, and diluted earnings per share of
$0.25, down 53%. Excluding restructuring, transformation, integration and
transaction costs, adjusted net income was $23.5 million, up 26%, and adjusted
earnings per share were $0.90, up 25%. Organic net revenue, exclusive of the
recently acquired whole blood business, was $189.6 million, up 6%. Excluding
currency impacts, net revenue was up 22% in total and 6% on an organic
basis.[1]

(Logo: http://photos.prnewswire.com/prnh/20120206/NE47232LOGO )

Brian Concannon, Haemonetics' President and CEO, commented: "The highlights of
our second quarter were the successful acquisition of the whole blood business
and continued organic revenue growth in disposables across our entire product
portfolio, especially in our Hospital business where 14% second quarter growth
followed 11% growth in the first quarter. Strong demand for the Cell Saver^®
Elite^® and TEG^® disposables, and growth in our OrthoPAT^® business, provide
strong evidence that our Hospital customers continue to embrace our Blood
Management Solutions recognizing the inherent value proposition offered." 

STRATEGIC AND PRODUCT GROWTH HIGHLIGHTS

Haemonetics continues to make progress expanding its business, reporting the
following highlights:

  o22% revenue growth including 6% organic revenue growth.
  o7% revenue growth in plasma disposables.
  o16% revenue growth in surgical disposables.
  o23% revenue growth in diagnostic disposables.
  o5% revenue growth in OrthoPAT disposables, a return to growth as expected.
  o21% organic revenue growth in China.
  o$29 million of revenue from whole blood with uninterrupted customer
    service.
  oAnnounced two-for-one stock split.

A revenue breakdown follows:

Plasma

Plasma disposables revenue was $68.7 million, up 7% and growth in North
America was up 10%. On a year-to-date basis, global plasma revenue is up 4%.
The Company continues to expect its plasma business to grow 4-6% in fiscal
2013 consistent with end market growth rates for plasma derived
biopharmaceuticals.

Blood Center

Platelet disposables revenue was $43.2 million, up 2% over the prior year's
second fiscal quarter, with continued benefit from strong sales in emerging
markets. Red cell disposables revenue was $11.9 million, up 2%. Though the
clinical demand for blood remained flat, red cell revenue grew on increased
collections as the Company leveraged its IMPACT^® selling approach to advance
Blood Management Solutions.

On a year-to-date basis, blood center revenue is up 1% organically and the
Company continues to expect its blood center business to grow 0-2% organically
in fiscal 2013, with continued growth in both platelet and red cell
disposables as the year progresses. Whole blood revenue of $29 million was in
line with expectations considering buy-ins by customers in advance of the
ownership transfer. The Company is affirming its previous guidance for whole
blood revenue of $135-$145 million.

Hospital

Surgical disposables revenue was $18.8 million in the quarter, up 16%.
Notably this was the fifth consecutive quarterly increase, as the product
launch of the Cell Saver Elite device continues to accelerate. Recent strong
Cell Saver Elite equipment sales drove near term disposables growth.

Disposables revenue from the OrthoPAT orthopedic perioperative autotransfusion
system was $7.6 million in the quarter, up 5% following a prior quarter
decline of 3% and a full fiscal 2012 decline of 12%. The impact of the fiscal
2012 voluntary recall of pre-2002 devices upon disposables usage has ended and
the expected return to growth has begun. 

Diagnostics revenue was $6.9 million in the quarter, up 23%, as the Company's
IMPACT initiative continues to drive growth in disposables utilized in the
TEG^® Thrombelastograph^® Hemostasis Analyzer. TEG equipment sales were
especially strong in recent quarters, a key indicator for near term future
disposables revenue growth. TEG ^ disposables sales also increased 23% in
China. 

On a year-to-date basis, Hospital revenue is up 13% and the Company continues
to expect its hospital business to grow 12-15% in fiscal 2013 with continued
strength in surgical and diagnostics disposables, and continued OrthoPAT
disposables revenue growth.

Software and Equipment

Software Solutions revenue was $18.0 million, up 5%. The enhanced offering of
software products for Blood Center and Hospital customers drove revenue growth
of 10% in North America. On a year-to-date basis, software revenue is flat
with prior year levels and trending upward, thus the Company continues to
expect its software business to grow 5-7% in fiscal 2013. 

Equipment and other revenue was $14.3 million, down 3% following several
quarters with strong double-digit percentage growth. Equipment revenue is
influenced by the timing of tenders and capital budgets and on a year-to-date
basis, Equipment revenue is up 7%. Sales of Cell Saver Elite and TEG devices
in emerging markets continue to be particularly strong.

Haemonetics reported second quarter fiscal 2013 organic revenue growth of 8%
in North America and 10% in Asia, along with a 2% decline in Europe. Organic
revenue growth in Japan was 6%.

Adjusted gross profit was $111.6 million up $20.2 million or 22.1%. Adjusted
gross margin was 51.0%, up 10 basis points, as benefits in the core business
were more than sufficient to offset the impact of revenue mix toward lower
margin whole blood disposables.

Adjusted operating expenses were $78.0 million, up $12.2 million or 18.5%.
Operating expense increases included $8.0 million in the new whole
bloodbusiness and planned investments in global growth initiatives, emerging
markets and infrastructure to support anticipated organic and acquisitive
revenue growth; theseexpenses areexpected to accelerate in the second half
of the fiscal year. Additionally, a full accrual of performance based
compensation was provided in the second quarter of fiscal 2013.

Adjusted operating margin of 15.4% was up 120 basis points and reflected the
inclusion of only seven weeks' profits of the newly acquired whole blood
business. Operating margin benefited from a managed ramp-up of investments in
global growth initiatives and certain expenditures related to infrastructure
build for the acquired whole blood business.

Acquisition related amortization expense included in second quarter adjusted
earnings was $5.7 million in fiscal 2013 and $2.5 million in fiscal 2012, or
$0.14 and $0.06 per share respectively. Year-to-date adjusted earnings
included $8.3 million in fiscal 2013 and $5.0 million in fiscal 2012, or $0.22
and $0.12 per share respectively, of acquisition-related amortization expense.

Balance Sheet and Cash Flow

Cash on hand was $187 million, a decrease of $49 million during the quarter,
as the Company utilized $60 million of cash toward the whole blood business
acquisition. The Company reported first half free cash flow before
restructuring, transformation, integration and transaction costs of $22
million, a reduced level from the prior year due to an anticipated buildup of
certain required elements of working capital not acquired.

Fiscal 2013 Guidance and Fiscal 2014 Outlook

The Company reaffirmed its previous fiscal 2013 organic revenue growth
expectation of approximately 4-6%, with plasma expected to grow 4-6%, Blood
Center 0-2%, Hospital products 12-15%, and Software Solutions 5-7%. Whole
blood revenue expectations are also reaffirmed at approximately $135-$145
million for fiscal 2013. Thus, total revenue is estimated in the range of
$890-$915 million, up 23-26%.

Full year adjusted gross margin is expected to be in a range of 50-51%
inclusive of the lower gross margin whole blood product line. Adjusted
operating income is expected to be between $127-$130 million, and free cash
flow will approximate $85 million before funding restructuring, transformation
and transaction costs. The paced ramp-up of expenses is expected to
accelerate in the second half of the year. Accordingly, the previously
indicated adjusted earnings per share range of $3.30-$3.40, up 9%-12% over
fiscal 2012, is also reaffirmed. Whole blood profits, IT and other costs of
scaling the Company's infrastructure to meet the needs of the combined
businesses, as well as amortization expenses, financing costs and income taxes
are included in adjusted earnings projections.

The Company continues to expect to incur costs in the current fiscal year for
integration activities of $30-$35 million, which are excluded from adjusted
earnings guidance. Annual guidance also assumes the exclusion of
approximately $3 million of transaction related costs and approximately $13
million of adjustments to cost of goods sold on the sale of acquired whole
blood and other filter inventories. The Company also expects to incur
restructuring and transformation costs within the base business of $3-$4
million which are excluded from adjusted earnings guidance. 

More information on fiscal year 2013 guidance, including income statement
scenarios underlying the lower and upper ends of the adjusted earnings per
share guidance range, can be found in the Investor Relations section of our
web site at http://www.haemonetics.com.[1]

For fiscal 2014, previous indications are affirmed, as organic revenue growth
is expected to approximate 5-7%. Together with a full year of revenues from
the acquired whole blood business, which is expected to contribute incremental
revenue of $70 million related to the timing of the acquisition, fiscal 2014
revenues are expected to surpass $1 billion. The Company's previously
provided preliminary outlook for fiscal 2014 adjusted earnings per share of
$3.90-$4.10, approximately 20% above fiscal 2013 expected earnings per share,
is affirmed. Included in these amounts are approximately $29 million or $0.75
per share of acquisition related amortization expense.

Mr. Concannon added: "While completing the largest acquisition in our
company's history, our team remained customer focused and delivered excellent
second quarter results. This included solid organic revenue growth of 6%, $29
million of whole blood revenue realized through seamless customer ordering,
and effective cost management. We remain confident in our business
fundamentals and are able to reaffirm the fiscal 2013 revenue and earnings
guidance, and the fiscal 2014 preliminary outlook that we previously
provided."

Stock Split

The Company announced today that its Board of Directors approved a two-for-one
split of the Company's common stock, which will be effected in the form of a
100 percent stock dividend. The stock dividend will be distributed November
30 to stockholders of record as of November 9. Haemonetics' common stock will
begin trading on a post-split basis on the New York Stock Exchange on December
3, 2012.

Each share of the Company's pre-split common stock held by a shareholder,
including shares subject to outstanding stock options and shares available for
grant under the Company's equity incentive plans, will be represented by two
shares of the Company's post-split common stock. The split will affect all
stockholders uniformly and will not affect any stockholder's ownership
percentage.

The Company expects that this split will make its shares more accessible,
increase its shareholder base and improve its market liquidity. With the
Company's recent growth, long term shareholder value creation and its most
significant acquisition recently completed, the stock split also reflects
confidence in the Company's strength and ability to continue to generate long
term growth and financial performance.

Fiscal 2013 Share Repurchase Program

The Company repurchased 74,300 shares in the open market at an average cost of
$71.91, returning $5.3 million to shareholders during the second quarter. The
Board of Directors previously approved the repurchase of up to $50 million of
shares in the open market during the remainder of fiscal 2013.

CONFERENCE CALL

Haemonetics will host a webcast to discuss the first quarter results on
Monday, October 29, 2012 at 8:00 am Eastern time. Interested parties can
participate at:
http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=72118&eventID=4839735.

Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing
innovative blood management solutions for our customers. Together, our
devices and consumables, information technology platforms, and consulting
services deliver a suite of business solutions to help our customers improve
clinical outcomes and reduce the cost of healthcare for blood collectors,
hospitals, and patients around the world. Our technologies address important
medical markets: blood and plasma component collection, the surgical suite,
and hospital transfusion services. To learn more about Haemonetics, visit our
web site at http://www.haemonetics.com.

This release contains forward-looking statements that involve risks and
uncertainties, including the effects of disruption from the acquisition of the
Pall Transfusion Medicine business making it more difficult to maintain
relationships with employees, customers, vendors and other business partners,
unexpected expenses incurred to integrate the Pall Transfusion Medicine
business, technological advances in the medical field and standards for
transfusion medicine and our ability to successfully implement products that
incorporate such advances and standards, product demand, product quality,
market acceptance, regulatory uncertainties, the effect of economic and
political conditions, the impact of competitive products and pricing, blood
product reimbursement policies and practices, foreign currency exchange rates,
changes in customers' ordering patterns, the effect of industry consolidation
as seen in the plasma market, the effect of communicable diseases and the
effect of uncertainties in markets outside the U.S. (including Europe and
Asia) in which we operate and other risks detailed in the Company's filings
with the Securities and Exchange Commission. The foregoing list should not be
construed as exhaustive.

Forward-looking statements are based on estimates and assumptions made by
management of the Company and are believed to be reasonable, though inherently
uncertain and difficult to predict. Actual results and experience could
differ materially from the forward-looking statements.Information set forth
in this press release is current as of today and the Company undertakes no
duty or obligation to update this information.

[1] A reconciliation of GAAP to adjusted financial results is included at the
end of the financial sections of this press release as well as on the web at 
http://www.haemonetics.com. GAAP results include the following items which
are excluded from adjusted results: $14million of pre-tax integration,
transaction and base business restructuring andtransformation costs in the
second quarter of fiscal 2013 and $9 million of pre-tax restructuring and
transformation costs and $2 million of contingent consideration income in the
second quarter of fiscal 2012. The $14 million pre-tax amount in the second
quarter of fiscal 2013 includes: $11 million of integration costs, $1 million
of transaction costs and $2 million of base business restructuring and
transformation costs. Additionally, cost of goods sold in the second quarter
of fiscal 2013 GAAP results include $10 million attributable to amounts in
excess of manufactured cost of acquired whole blood and other filter inventory
sold during the quarter. Because such amounts are limited to the whole blood
and other filter inventory on hand at the date of the acquisition and do not
reflect the ongoing profitability of the acquired business, they have also
been excluded from adjusted results.



Haemonetics Corporation Financial Summary
(Unaudited data in thousands, except per share data)
Consolidated Statements of Income for the Second Quarter of FY13 and FY12
                                9/29/2012    10/1/2011    % Inc/(Dec)
                                As Reported  As Reported  vs Prior Year
Net revenues                    $ 218,178    $ 179,445    21.6          %
Gross profit                    101,762      89,949       13.1          %
    R&D                         10,827       10,350       4.6           %
    S,G&A                       81,034       62,613       29.4          %
    Contingent consideration    —            (1,580)
    income
Operating expenses              91,861       71,383       28.7          %
Operating income                9,901        18,566       (46.7)        %
Other income (expense), net     (1,311)      445          -
Income before taxes             8,590        19,011       (54.8)        %
Tax expense                     2,043        5,131        (60.2)        %
Net income                      $ 6,547      $ 13,880     (52.8)        %
Net income per common share     $ 0.25       $ 0.54       (53.7)        %
assuming dilution
Weighted average number of
shares:
    Basic                       25,710       25,418
    Diluted                     26,157       25,843
Profit Margins:                                           Inc/(Dec) vs prior
                                                          year profit margin %
Gross profit                    46.6      %  50.1      %  (3.5)         %
R&D                             5.0       %  5.8       %  (0.8)         %
S,G&A                           37.1      %  34.9      %  2.2           %
Operating income                4.5       %  10.3      %  (5.8)         %
Income before taxes             3.9       %  10.6      %  (6.7)         %
Net income                      3.0       %  7.7       %  (4.7)         %



Haemonetics Corporation Financial Summary
(Unaudited data in thousands, except per share data)
Consolidated Statements of Income for Year-to-Date FY13 and FY12
                                9/29/2012    10/1/2011    % Inc/(Dec)
                                As Reported  As Reported  vs Prior Year
Net revenues                    $ 394,653    $ 350,014    12.8          %
Gross profit                    191,875      178,698      7.4           %
    R&D                         20,235       18,959       6.7           %
    S,G&A                       148,659      118,844      25.1          %
    Contingent consideration    —            (1,580)      (100.0)       %
    income
Operating expenses              168,894      136,223      24.0          %
Operating income                22,981       42,475       (45.9)        %
Other income (expense), net     (975)        230          -
Income before taxes             22,006       42,705       (48.5)        %
Tax expense                     5,671        11,877       (52.3)        %
Net income                      $ 16,335     $ 30,828     (47.0)        %
Net income per common share     $ 0.63       $ 1.18       (46.6)        %
assuming dilution
Weighted average number of
shares:
    Basic                       25,596       25,575
    Diluted                     26,044       26,029
Profit Margins:                                           Inc/(Dec) vs prior
                                                          year profit margin %
Gross profit                    48.6      %  51.1      %  (2.5)         %
R&D                             5.1       %  5.4       %  (0.3)         %
S,G&A                           37.7      %  34.0      %  3.7           %
Operating income                5.8       %  12.1      %  (6.3)         %
Income before taxes             5.6       %  12.2      %  (6.6)         %
Net income                      4.1       %  8.8       %  (4.7)         %



Revenue Analysis for the Second Quarter and Year-To-Date FY13 and FY12
(Unaudited data in thousands)
                            Three Months Ended
                            9/29/2012       10/1/2011    % Inc/(Dec)
                            As Reported     As Reported  vs Prior Year
Revenues by geography
  United States             $   113,015     $  86,339    30.9     %
  International             105,163         93,106       12.9     %
Net revenues                $   218,178     $  179,445   21.6     %
Disposable revenues
  Plasma disposables        $   68,677      $  64,408    6.6      %
  Blood center disposables
  Platelet                  43,198          42,195       2.4      %
  Red cell                  11,918          11,645       2.3      %
  Whole blood               28,620
                            83,736          53,840       55.5     %
  Hospital disposables
  Surgical                  18,804          16,206       16.0     %
  OrthoPAT                  7,645           7,295        4.8      %
  Diagnostics               6,937           5,659        22.6     %
                            33,386          29,160       14.5     %
  Subtotal                  185,799         147,408      26.0     %
Software solutions          18,043          17,199       4.9      %
Equipment & other           14,336          14,838       (3.4)    %
Net revenues                $   218,178     $  179,445   21.6     %
                            Six Months Ended
                            9/29/2012       10/1/2011    % Inc/(Dec)
                            As Reported     As Reported  vs Prior Year
Revenues by geography
  United States             $   200,922     $  172,734   16.3     %
  International             193,731         177,280      9.3      %
Net revenues                $   394,653     $  350,014   12.8     %
Disposable revenues
  Plasma disposables        $   132,555     $  127,168   4.2      %
  Blood center disposables
  Platelet                  80,440          79,504       1.2      %
  Red cell                  23,986          23,514       2.0      %
  Whole blood               28,620
                            133,046         103,018      29.1     %
  Hospital disposables
  Surgical                  37,064          31,948       16.0     %
  OrthoPAT                  15,186          15,049       0.9      %
  Diagnostics               13,436          11,273       19.2     %
                            65,686          58,270       12.7     %
  Subtotal                  331,287         288,456      14.8     %
Software solutions          35,347          35,359       —        %
Equipment & other           28,019          26,199       6.9      %
Net revenues                $   394,653     $  350,014   12.8     %



Consolidated Balance Sheets
(Unaudited data in thousands)
                                          As of
                                          9/29/2012     3/31/2012
Assets
Cash and cash equivalents                 $ 187,051     $ 228,861
Accounts receivable, net                  158,175       135,464
Inventories, net                          173,506       117,163
Other current assets                      58,068        45,641
         Total current assets             576,800       527,129
Net PP&E                                  239,160       161,657
Other assets                              638,595       222,349
 Total assets                          $ 1,454,555   $ 911,135
                                          As of
                                          9/29/2012     3/31/2012
Liabilities & Stockholders' Equity
Short term debt & current maturities      $ 4,249       $ 894
Other current liabilities                 151,945       129,850
         Total current liabilities        156,194       130,744
Long-term debt                            477,402       2,877
Other long-term liabilities               48,993        44,883
Stockholders' equity                      771,966       732,631
 Total liabilities & stockholders' equity $ 1,454,555   $ 911,135



Free Cash Flow Reconciliation
(Unaudited data in thousands)
                                                          Three Months Ended
                                                          9/29/2012  10/1/2011
GAAP cash flow from operations                            $ 33,014   $ 25,408
Capital expenditure                                       (25,991)   (12,042)
Proceeds from sale of property, plant and equipment       103        111
Net investment in property, plant and equipment           (25,888)   (11,931)
Free cash flow after restructuring and transformation     7,126      13,477
costs
Restructuring and transformation costs                    11,541     2,807
Free cash flow before restructuring and transformation    $ 18,667   $ 16,284
costs
                                                          Six Months Ended
                                                          9/29/2012  10/1/2011
GAAP cash flow from operations                            $ 33,567   $ 52,539
Capital expenditure                                       (34,432)   (23,843)
Proceeds from sale of property, plant and equipment       355        130
Net investment in property, plant and equipment           (34,077)   (23,713)
Free cash flow after restructuring and transformation     (510)      28,826
costs
Restructuring and transformation costs                    22,286     4,585
Free cash flow before restructuring and transformation    $ 21,776   $ 33,411
costs



Haemonetics Corporation Financial Summary
Reconciliation of Non-GAAP Measures
Haemonetics has presented supplemental non-GAAP financial measures as part of
this earnings release. A reconciliation is provided below that reconciles each
non-GAAP financial measure with the most comparable GAAP measure. The
presentation of non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, the most directly comparable GAAP
measures. There are material limitations to the usefulness of non-GAAP
measures on a standalone basis, including the lack of comparability to the
GAAP financial results of other companies.
These measures are used by management to monitor the financial performance of
the business, inform business decision making, and forecast future results.
Performance targets for management are established based upon these non-GAAP
measures. In the reconciliations below, we have removed restructuring and
transformation costs and certain cost of goods sold related to the acquisition
of Pall's Transfusion Medicine Business ("Whole Blood Acquisition") from our
GAAP expenses. Our restructuring and transformation costs in fiscal 2013 are
principally related to transaction and integration expenses related to the
Whole Blood Acquisition. The cost of goods sold removed from GAAP expenses
related to the Whole Blood Acquisition principally relate to the increase in
the fair value of acquired whole blood inventory required under purchase
accounting standards. We believe this information is useful for investors
because it allows for an evaluation of the Company with a focus on the
performance of our core operations.
Non-GAAP Gross Profit

The use of these non-GAAP measures allows management to monitor the level of
total gross profits without the costs of our business transformation. We
establish our budgets, forecasts, and performance targets on this basis.
Non-GAAP S,G&A and Non-GAAP Operating Expenses

The use of this non-GAAP measure allows management to monitor the ongoing
level of spend that is necessary to support the business in a period when we
are not transforming our business or completing an acquisition of in-process
research and development. We establish our budgets, forecasts, and performance
targets excluding these costs.
Non-GAAP Operating Income and Non-GAAP Income before Income Taxes

The use of these non-GAAP measures allows management to monitor the level of
operating and total pre-tax profits without the costs of our business
transformation. We establish our budgets, forecasts, and performance targets
on this basis.
Non-GAAP Net Income and Earnings per Share

The use of these non-GAAP measures allows management to monitor the level of
net income and earnings per share excluding both the costs of our business
transformation, as well as any related tax effects. We establish our budgets,
forecasts, and performance targets on this basis.

Reconciliation of Non-GAAP Measures for the Second Quarter of FY13 and FY12
                                                         Three Months Ended
                                                         9/29/2012   10/1/2011
Non-GAAP gross profit
GAAP gross profit                                        $ 101,762   $ 89,949
Whole Blood Acquisition cost of goods sold adjustment      9,788
Restructuring and transformation costs                               1,381
Non-GAAP gross profit                                    $ 111,550   $ 91,330
Non-GAAP R&D
GAAP R&D                                                 $ 10,827    $ 10,350
Restructuring and transformation costs                   (1,592)     (1,356)
Non-GAAP R&D                                             $ 9,235     $ 8,994
Non-GAAP S,G&A
GAAP S,G&A                                               $ 81,034    $ 62,613
Restructuring and transformation costs                   (12,287)    (5,792)
Non-GAAP S,G&A                                           $ 68,747    $ 56,821
Non-GAAP operating expenses
GAAP operating expenses                                  $ 91,861    $ 71,383
Restructuring and transformation costs                   (13,879)    (7,148)
Contingent consideration income                          —           1,580
Non-GAAP operating expenses                              $ 77,982    $ 65,815
Non-GAAP operating income
GAAP operating income                                    $ 9,901     $ 18,566
Restructuring and transformation costs                   23,667      8,529
Contingent consideration income                          —           (1,580)
Non-GAAP operating income                                33,568      $ 25,515
Non-GAAP income before taxes
GAAP income before taxes                                 $ 8,590     $ 19,011
Restructuring and transformation costs                   23,667      8,529
Contingent consideration income                          —           (1,580)
Non-GAAP income before taxes                             $ 32,257    $ 25,960
Non-GAAP net income
GAAP net income                                          $ 6,547     $ 13,880
Restructuring and transformation costs                   23,667      8,529
Contingent consideration income                          —           (1,580)
Tax benefit associated with non-GAAP items               (6,684)     (2,164)
Non-GAAP net income                                      $ 23,530    $ 18,665
Non-GAAP net income per common share assuming dilution
GAAP net income per common share assuming dilution       $ 0.25      $ 0.54
Non-GAAP items after tax per common share assuming       $ 0.65      0.18
dilution
Non-GAAP net income per common share assuming dilution   $ 0.90      $ 0.72

Presented below are additional Constant Currency performance measures. We
measure different components of our business at constant currency. We believe
this information is useful for investors because it allows for an evaluation
of the Company without the effect of changes in foreign exchange rates. These
results convert our local foreign currency operating results to the US Dollar
at constant exchange rates of 0.833 Euro to 1.00 US Dollar and 110 Yen to 1.00
US Dollar. They also exclude the results of our foreign currency hedging
program described in Note 7 to our consolidated financial statements in our
Form 10-K.
                               Three Months Ended
                               9/29/2012                   10/1/2011
Non-GAAP revenues
GAAP revenue                   $     218,178               $    179,445
Foreign currency effects       (14,983)                    (13,544)
Non-GAAP revenue -             $     203,195               $    165,901
constant currency
Non-GAAP net income
Non-GAAP net income,
adjusted for                   $     23,530                $    18,665
restructuring and
transformation costs
Foreign currency effects       (6,880)                     (3,213)
Income tax associated
with foreign currency          1,861                       903
effects
Non-GAAP net income -          $     18,511                $    16,355
constant currency
Non-GAAP net income per
common share assuming
dilution
Non-GAAP net income per
common share assuming
dilution, adjusted for         $     0.90                  $    0.72
restructuring and
transformation costs
Foreign currency effects
after tax per common           $     (0.19)                $    (0.09)
share assuming dilution
Non-GAAP net income per
common share assuming          $     0.71                  $    0.63
dilution - constant
currency

Reconciliation of Non-GAAP Measures for FY13 and FY12
                                                        Six Months Ended
                                                        9/29/2012   10/1/2011
Non-GAAP gross profit
GAAP gross profit                                       $ 191,875   $ 178,698
Whole Blood Acquisition cost of goods sold adjustment   9,788
Restructuring and transformation costs                              1,381
Non-GAAP gross profit                                   $ 201,663   $ 180,079
Non-GAAP R&D
GAAP R&D                                                $ 20,235    $ 18,959
Restructuring and transformation costs                  (2,134)     (1,356)
Non-GAAP R&D                                            $ 18,101    $ 17,603
Non-GAAP S,G&A
GAAP S,G&A                                              $ 148,659   $ 118,844
Restructuring and transformation costs                  (18,183)    (6,129)
Non-GAAP S,G&A                                          $ 130,476   $ 112,715
Non-GAAP operating expenses
GAAP operating expenses                                 $ 168,894   $ 136,223
Restructuring and transformation costs                  (20,317)    (7,485)
Contingent consideration income                         —           1,580
Non-GAAP operating expenses                             $ 148,577   $ 130,318
Non-GAAP operating income
GAAP operating income                                   $ 22,981    $ 42,475
Restructuring and transformation costs                  30,105      8,865
Contingent consideration income                         —           (1,580)
Non-GAAP operating income                               $ 53,086    $ 49,760
Non-GAAP income before taxes
GAAP income before taxes                                $ 22,006    $ 42,705
Restructuring and transformation costs                  30,105      8,865
Contingent consideration income                         —           (1,580)
Non-GAAP income before taxes                            $ 52,111    $ 49,990
Non-GAAP net income
GAAP net income                                         $ 16,335    $ 30,828
Restructuring and transformation costs                  30,105      8,865
Contingent consideration income                         —           (1,580)
Tax benefit associated with non-GAAP items              (8,565)     (2,350)
Non-GAAP net income                                     $ 37,875    $ 35,763
Non-GAAP net income per common share assuming dilution
GAAP net income per common share assuming dilution      $ 0.63      $ 1.18
Non-GAAP items after tax per common share assuming      $ 0.82      $ 0.19
dilution
Non-GAAP net income per common share assuming dilution  $ 1.45      $ 1.37

Presented below are additional Constant Currency performance measures. We
measure different components of our business at constant currency. We believe
this information is useful for investors because it allows for an evaluation
of the Company without the effect of changes in foreign exchange rates. These
results convert our local foreign currency operating results to the US Dollar
at constant exchange rates of 0.833 Euro to 1.00 US Dollar and 110 Yen to 1.00
US Dollar. They also exclude the results of our foreign currency hedging
program described in Note 7 to our consolidated financial statements in our
Form 10-K.
                                 Six Months Ended
                                 9/29/2012                 10/1/2011
Non-GAAP revenues
GAAP revenue                     $     394,653             $    350,014
Foreign currency effects         (27,800)                  (24,607)
Non-GAAP revenue - constant      $     366,853             $    325,407
currency
Non-GAAP net income
Non-GAAP net income,
adjusted for restructuring,
transformation costs and         $     37,875              $    35,763
contingent consideration
income
Foreign currency effects         (11,519)                  (6,416)
Income tax associated with       3,148                     1,827
foreign currency effects
Non-GAAP net income -            $     29,504              $    31,174
constant currency
Non-GAAP net income per
common share assuming
dilution
Non-GAAP net income per
common share assuming
dilution, adjusted for
restructuring,                   $     1.45                $    1.37
transformation costs and
contingent consideration
income
Foreign currency effects
after tax per common share       $     (0.32)              $    (0.18)
assuming dilution
Non-GAAP net income per
common share assuming            $     1.13                $    1.19
dilution - constant
currency





Restructuring, Transformation and Other costs



(in thousands)



GAAP results include the following items which are excluded from adjusted
results
                                                       Three Months Ended
                                                       9/29/2012     10/1/2011
Whole Blood acquisition cost of goods sold             $  9,788      $  -
adjustments
Integration                                            10,811        -
HS Core                                                   4             3,217
Restructuring and transformation                          2,361         5,322
Transaction costs                                      703
Total restructuring, transformation and other costs    $  23,667     $  8,529
                                                       Six Months Ended
                                                       9/29/2012     10/1/2011
Whole Blood acquisition cost of goods sold             $  9,788      $  -
adjustments
Integration                                            14,606        -
HS Core                                                   (977)         3,217
Restructuring and transformation                          3,901         5,648
Transaction costs                                      2,787
Total restructuring, transformation and other costs    $  30,105     $  8,865



CONTACT:
Gerry Gould, VP-Investor Relations
Tel. (781) 356-9402
gerry.gould@haemonetics.com
Alt. (781) 356-9613

SOURCE Haemonetics Corporation

Website: http://www.haemonetics.com
 
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