By a News Reporter-Staff News Editor at China Weekly News -- Sirona (Nasdaq:SIRO), the dental technology leader, announced its financial results for the quarter ended June 30, 2014. Third Quarter Fiscal 2014 vs. Third Quarter Fiscal 2013 Financial Results Revenue was $299.7 million, an increase of $16.5 million or up 5.8% (and up 2.5% on a constant currency basis). The Company's business segments performed as follows: Instruments increased 14.0% (up 8.9% on a constant currency basis), Imaging Systems increased 8.9% (up 6.1% on a constant currency basis), CAD/CAM Systems increased 6.2% (up 3.5% on a constant currency basis), and Treatment Centers decreased 4.7% (down 9.3% on a constant currency basis).
Revenue in the United States increased 8.2%, and revenues outside the United States increased 4.7% (down 0.3% constant currency). U.S. revenues benefited from continued demand for our Imaging and CAD/CAM products. Growth was driven by new user demand for our CAD/CAM products. Sales growth in international markets was particularly strong in Asia Pacific, led by China and Japan.
Gross profit was $167.6 million, up $16.1 million. Gross profit margin was 55.9% in the third quarter of Fiscal 2014, compared to 53.5% in the prior year. The increase in gross profit margin as a percent of sales was driven by improvements in product and regional sales mix and cost reductions more than offsetting foreign exchange headwinds.
Net income attributable to Sirona Dental Systems, Inc. for the third quarter of 2014 was $51.5 million, or $0.92 per diluted share, versus $40.6 million, or $0.72 per diluted share in the prior year period. Non-GAAP adjusted earnings per diluted share for the third quarter of 2014 was $0.99 compared to $0.91 in the prior year quarter, or an increase of 8.2%. A reconciliation of the non-GAAP measure to earnings per share calculated on a GAAP basis is provided in the attached table.
At June 30, 2014, the Company had cash and cash equivalents of $297.0 million and total debt of $79.5 million, resulting in net cash of $217.5 million. This compares to net cash of $175.7 million at March 31, 2013.
Jeffrey Slovin, President and CEO of Sirona commented: "During the third quarter, Sirona grew 4.5% in local currencies, on top of 18.3% growth in the third quarter last year. Our strong results were geographically diversified, with the U.S. and Asia Pacific leading the way. CAD/CAM, Imaging and Instruments each had record quarters and posted gross margin improvement. Increased new user demand drove CAD/CAM growth of 5.8%, in local currencies, on top of 25.1% growth in the third quarter last year."
Keywords for this news article include: Asia, China, Dentistry, Sirona Dental Systems Inc.
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