Making strategic moves can make or break a company, and when you mix selling off a segment with the acquisition of another company, many things can go wrong. But when it is done correctly, it can boost revenues, and position a company for future growth opportunities. This is exactly what has happened to CryoLife Inc. (CRY – Snapshot Report) the Zacks Bull of the Day.  

This Zacks Rank #1 (Strong Buy) is the leader in the development and commercialization of implantable living human tissues for use in cardiovascular, vascular, and orthopaedic surgeries throughout the United States and Canada. The company’s BioGlue surgical adhesive, the company marked in the European Union for use in vascular and pulmonary sealing and repair, is distributed throughout Europe. The company also manufactures CryoLife- O’Brien and CryoLife-Ross stentless porcine heart valves which are distributed within the European Community.

In their most recent earnings report, the company saw quarterly and annual gains for both earnings and revenues.One the quarterly side, revenues rose +7% to $39.8 million (a quarterly record for the company), product revenues improved +10%, tissue processing revenues rose +3%, and net income was up a staggering +44.4%. The improvements in product revenues was due to overall increases in revenues for their CardioGenesis cardiac laser therapy, PhotoFix, and ProCol products.The tissue processing revenues were driven by an increase in average service fees. On the annual side, overall revenues improved +1.0%, product revenues were up 1.0%, and tissue processing revenues remained flat for the year.  

Also, during the quarter, the company acquired On-X Life Technologies Holdings, a privately held mechanical heart valve company.The acquisition gives CryoLife access to the $220 million mechanical heart and valve market, and improves their cross-selling ability.The On-X acauisition will be complementary to CryoLife’s existing tissue valve business.