Symmetry Medical (SMA)

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Greg Aurand

www.zacks.com

Symmetry Medical, Inc., headquartered in Warsaw, Indiana, went public in December 2004 but was established in 1976 as an instruments supplier to orthopedic device manufacturers. In 1996, Symmetry acquired a manufacturer of cases to extend its product offerings. In 1998 and 1999, the company expanded its overseas presence by acquiring a UK instruments manufacturer and a cases manufacturer in France. In 2003, the company acquired Mettis (UK) Limited, a leading manufacturer of forged, cast and machined implants. The company is now the world's largest independent provider of implants and related instruments and cases to orthopedic device manufacturers. The company also designs, develops, and produces these products for companies in other segments of the medical device market, including dental, osteobiologic, and endoscopy sectors, and provides limited specialized products and services to non-healthcare markets, such as the aerospace market. The company provides its customers with a broad range of products, comprehensive services, and production capabilities through its Total Solutions approach. Symmetry Medical derives its revenue principally from four segments: implants, instruments, cases, and other products and services. The company provides implants for use in specific implant systems, mainly in knee and hip implants. Orthopedic implants are used in reconstructive surgeries to replace or repair hips, knees, and other joints, primarily shoulders, ankles, and elbows. Symmetry Medical also manufactures implant products for trauma, spine, and other implant systems. The company makes precision surgical instruments used in hip, knee, and shoulder reconstruction procedures, and in spinal, trauma, and other implant procedures. It also provides implant-specific and procedure-specific instruments. The company also produces plastic, metal, and hybrid cases to store, transport, and arrange surgical instruments and related implant systems for orthopedic device manufacturers. Dental cases are used in dental implant and general dental procedures. Other cases are used for arthroscopy, osteobiologic, endoscopy, cardiovascular, ophthalmology, and diagnostic imaging, as well as ear, nose, and throat procedures. In Q406, net revenues were $58.5 million, with implants, instruments, cases, and other products and services contributing 40%, 22%, 25%, and 13%, respectively. The company markets its Total Solutions approach through its experienced sales force that operates in the United States, Europe, and Japan. Geographically, in Q406, the United States, United Kingdom, and others contributed 58%, 22%, and 20% respectively.

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