Bovie Medical (BVX 4.90, -0.09, -1.75%) is trading higher after preannouncing
upside second quarter revenue and selling its Core business segment to Symmetry
Surgical for gross proceeds of $97 mln in cash.
The Company is retaining its Advanced Energy and OEM businesses, its facilities in Clearwater, FL and Sofia, Bulgaria, and certain intellectual property related to specialty generators. Bovie and Symmetry will also enter into a transition services agreement, a patent licensing agreement, a disposables supply agreement and a generator manufacturing and supply agreement, the latter of which will establish the Company as an OEM-provider of generators to Symmetry for a period of at least 10 years.
Bovie also guided second quarter revenue above estimates. Bovie guided for second quarter revenue up 15-17% to $11.2-11.5 mln, ~12% above estimates at the midpoint. Bovie said Core revenue grew 2-4% to $7.6-7.8 mln. Advanced Energy revenue grew 66-72% to $3.0-3.1 mln.
The Advanced Energy segment growth is fueled by the commercialization of J-Plasma technology in the cosmetic surgery market under the Renuvion Cosmetic Technology brand. Renuvion is FDA cleared for cutting, coagulation, and ablation of soft tissue during open and laparoscopic surgical procedures.
Chief Executive Charlie Goodwin said: "This is a milestone moment for the Company, one that creates significant value for our shareholders by significantly enhancing our balance sheet with the addition of more than $70 mln in estimated net cash proceeds after taxes and transaction related expenses and allowing us to further focus the organization on our strategic objective of commercializing our J-Plasma/Renuvion technology in the cosmetic surgery market."
In May, the company guided for Advanced Energy sales growth of 40-45% for the year. Bovie will be squarely focused on this growth opportunity in the aesthetics space going forward.
Bovie currently has a ~$180 mln market cap but proceeds from the sale of the core business will bring the company's enterprise value closer to $100 mln.
- OUR VIEW
- LEARNING CENTER