The stockholders of Biomet Inc. will be getting a tidy little dividend Aug. 6 despite the company having to absorb a $55 million charge against earnings.

The decision to pay 14 cents per share to shareholders of record as of July 9 is a reflection of the confidence the board has in the Warsaw-based biomedical firm.

"The declaration of this dividend is an expression of appreciation for the continued support of our shareholders and reflects the board's confidence and optimism in Biomet's operational direction," said Dane Miller, Ph.D., president and chief executive officer of Biomet.

In the financial report released by the company today, Biomet had a 12 percent increase in net sales for the fourth quarter of its fiscal year (ending May 31) with $205,080,000. That translated into a gross profit of $143,088,000.

However, because of a $55 million one-time charge against earnings to pay the court-ordered compensatory damages in the Orthofix lawsuit, operating income and net income showed significant decreases over the previous year, 89 and 72 percent respectively.

Biomet reported a 10 percent increase in U.S. sales, at $511,075,000. Foreign sales increased 31 percent, from $187,378,00 to $246,339,000.

Each of the company's product line categories showed double-digit increases in sales, with spinal products leading the way with a 26 percent gain. The reconstructive product line, the largest at $450,877,000, showed a 16 percent increase. Fixation device sales also posted a 12 percent gain. [[In-content Ad]]