Haemonetics Corporation announced unaudited consolidated earnings results for the third quarter and nine months ended December 27, 2014. For the quarter, the company reported net revenues of $231,827,000 against $242,120,000 a year ago. Operating income was $18,260,000 against $17,860,000 a year ago. Income before taxes was $15,952,000 against $15,008,000 a year ago. Net income was $15,988,000 against $16,290,000 a year ago. Net income per common share assuming dilution was $0.31 against $0.31 a year ago. GAAP cash flow from operations was $26,851,000 against $45,291,000 a year ago. Capital expenditures were $29,658,000 against $15,519,000 a year ago. Free cash flow before restructuring, transformation costs and vcc capital expenditures was $24,832,000 against $46,526,000 a year ago. Non-GAAP operating income was $38,393,000 against $42,490,000 a year ago. Non-GAAP income before taxes was $36,329,000 against $39,944,000 a year ago. Non-GAAP net income was $27,465,000 against $32,120,000 a year ago. Non-GAAP net income per common share assuming dilution was $0.53 against $0.61 a year ago. Non-GAAP revenue - constant currency was $226,580,000 against $229,855,000 a year ago. Non-GAAP net income per common share assuming dilution - constant currency was $0.46 against $0.53 a year ago.

For the nine months, the company reported net revenues of $683,895,000 against $697,418,000 a year ago. Operating income was $29,002,000 against $34,681,000 a year ago. Income before taxes was $21,506,000 against $26,646,000 a year ago. Net income was $19,827,000 against $24,964,000 a year ago. Net income per common share assuming dilution was $0.38 against $0.48 a year ago. GAAP cash flow from operations was $71,831,000 against $88,053,000 a year ago. Capital expenditures were $100,530,000 against $43,721,000 a year ago. Free cash flow before restructuring, transformation costs and vcc capital expenditures was $53,153,000 against $95,078,000 a year ago. Non-GAAP operating income was $102,313,000 against $125,003,000 a year ago. Non-GAAP income before taxes was $95,522,000 against $117,584,000 a year ago. Non-GAAP net income was $71,555,000 against $90,280,000 a year ago. Non-GAAP net income per common share assuming dilution was $1.38 against $1.73 a year ago. Non-GAAP revenue - constant currency was $63,772,000 against $78,190,000 a year ago. Non-GAAP net income per common share assuming dilution - constant currency was $1.23 against $1.50 a year ago.

Fiscal 2015 revenue guidance is reaffirmed at a decline of 0-2%, with revenue growth from identified growth drivers more than offset by revenue headwind from net volume and pricing declines in the U.S. blood center business, increased Japanese Yen weakness and worsening economic conditions in Russia. Full year expectations for adjusted gross margin are approximately 49%, below the prior estimate of 50%, as higher Plasma and lower Hospital revenue guidance represents unfavorable gross margin mix. Adjusted earnings per share in the range of $1.85 to $1.95 are reaffirmed. Previous free cash flow guidance of approximately $100-$110 million, before funding restructuring and capital investment for transformation activities, is also affirmed.

The company expects to return to a mid-single digit revenue growth rate in fiscal 2016. Included in that outlook is the impact of the continued strengthening of the dollar, which represents a headwind, partly offset by the benefit of a 53-week fiscal year. The company expects a return to double digit constant currency adjusted operating income and earnings per share growth rates in fiscal 2016. Including the impact of a greater than 500 basis point headwind attributable to the continued strengthening of the USD the fiscal 2016 outlook is for high single to low double digit, adjusted operating income and earnings per share growth. VCC investments are on track to be completed in fiscal 2016.