June 2007 -- In 2006, Kinetic Concepts Inc.'s balance sheet was robust and healthy, which fits in nicely with the company's mission of designing, manufacturing, marketing and servicing products for the health-care market. KCI's advanced wound care systems incorporate proprietary Vacuum Assisted Closure (V.A.C.) technology, which is used to help promote wound healing. The company also manufactures therapeutic surfaces, including specialty hospital beds, mattress replacement systems and overlays, which are designed to address pulmonary complications associated with immobility, to prevent skin breakdown and assist caregivers in the handling of obese patients.
In 2006, KCI's total revenue increased 13% to $1.37 billion from $1.21 billion the previous year. Most of that revenue gain was due to its V.A.C. technology, where revenue increased 18% to $1.07 billion from $907.5 million in the prior year. Net income for KCI was also up substantially, with an increase of 60% from year to year, from $122.2 million in 2005 to $195.5 million in 2006.
Through the first quarter of 2007, KCI continued to perform well, with total revenue up 10% from the prior-year period, net earnings up 10% and V.A.C. revenue up 19%.
That prompted Catherine Burzik, president and CEO of KCI, to state, "Overall, we are pleased with our first quarter performance. We made solid progress on a number of initiatives we have set out for 2007, including deeper V.A.C. penetration in established markets, profitable revenue growth in therapeutic surfaces and increased investment in our research and development. We look forward to further progress toward our strategic initiatives as the year unfolds."
