Integra LifeSciences †Limit Uncertainty Essay - 1128 Words

Integra LifeSciences – Limit Uncertainty Integra LifeSciences (IART) is a multinational corporation providing medical devices supporting wide array of surgical needs. Their strategic intent is to become the worldwide leader in in orthopedic extremity surgery, neurosurgery, spine surgery, and reconstructive and general surgery. Their innovative offerings and growth through acquisition has allowed them to become a billion dollar enterprise since their inception in 1989 (â€Å"IART profile†). They are headquartered in Plainsboro, New Jersey and have 3,300 employees worldwide (â€Å"Company profile,† 2014). Integras common stock is listed on The NASDAQ Stock Market under the symbol IART. Integra’s target markets reside in the United States,†¦show more content†¦It will address considerations surrounding the main economic agents of household, business, government and foreigners. The analysis will conclude with scenario analysis conceptualizing how Integra can mitigate risk with economic changes and currency adjustments in order meet or exceed revenue and growth projections. Assessment Integra’s 2014 first quarter performance exceeded market expectations and compared favorably to 2013 outcomes. Table 1 outlines performance by division, U.S. versus international and identifies the impact of currency exchange rates (â€Å"Integra lifesciences reports,† 2014). Table 1 Three Months Ended March 31, 2014 2013 Change U.S. Neurosurgery $54,383 $38,996 39% U.S. Instruments 36,720 36,948 -1% U.S. Extremities 31,912 31,361 2% U.S. Spine Other 41,067 43,548 -6% International* 50,977 45,799 11% Total Revenue $215,059 $196,652 9% Impact of changes in currency exchange rates $150 $— Less contribution of revenues from DuraSeal acquisition -14,220 — Less contribution of revenues from discontinued products -2,262 -3,843 -41% Total adjusted revenues $198,727 $192,809 3% Integra’s Exchange Rate Challenges Approximately 25% of Integra’s revenue is driven by business outside the U.S. Integra’s international sales are subject to currency fluctuations. First quarter of 2014 generated positive outcomes surrounding currency exchange ($ 150,000 positive variance). Integra deals in a