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Tampa Bay-Lakeland
Business Observer Tuesday, Mar. 8, 2011 8 years ago

Sun profits; SRI Surgical loses

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Sun Hydraulics' profits were strong for 2010, while SRI Surgical lost money.

Sun Hydraulics Corp.
SARASOTA — A 55% increase in annual revenues for Sarasota-based Sun Hydraulics Corp. (symbol: SNHY) led to strong percentage growth in both operating income and net income over the year.

As net sales increased from $97.4 million to $150.7 million, operating income grew from $2.1 million to $31.0 million, a 1,348% increase. And net income went up from $1.9 million to $21.4 million, a 1,053% gain.

CEO Allen Carlson admitted to being surprised by his company's success over the course of the year.

“Business activity in 2010 rebounded more quickly than we had anticipated,” Carlson said. “We have been able to keep up with the steadily increasing demand, while realizing substantial productivity improvements, thanks in large part to maintaining and investing in our workforce readiness throughout the downturn.”

Furthermore, growth in new customers, as well as ahead-of-schedule recovery in some of Sun's key markets like mining and construction, bode well for 2011.
“The macroeconomic outlook is robust,” Carlson added. “2011 could be a very good year.”

Headquartered in Sarasota, Sun Hydraulics Corp. designs and manufactures hydraulic cartridge valves, which have a variety of industrial applications. Investors were extremely impressed with Sun's latest results, which pushed the stock to a new 52-week high of $43.85 in early morning trading, a gain of nearly 12% in per-share value.

SRI/Surgical Express Inc.
Revenues for SRI/Surgical Express Inc. (symbol: STRC) grew by 2%, or $2.4 million in 2010, to a total of $100.9 million in business. But persistently high expenses prevented the company from being profitable for the second year in a row.

In 2009, SRI Surgical posted an operating loss of $3.4 million. This year, the Tampa firm reduced its operating losses by $2.3 million, but it wasn't enough to get the business into the black, leading to an overall net loss of $1.5 million.

The business is showing gradual improvement on a quarterly basis, however. After posting losses on operations in the first two quarters of the year, SRI Surgical earned $420,000 in positive operating income over the last six months of 2010.

CEO Gerald Woodward said the company expects to earn annual revenues between $107 million and $112 million in 2011, with diluted earnings per share between $0.10 and $0.16 — despite the fact that SRI Surgical lost $7.9 million over the past three years.

SRI Surgical stock opened at roughly $4 a share on Tuesday morning, after closing at just over $6 a share at the end of trading on Monday.

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