CryoLife, an implantable biological medical device and tissue processing company, has reported net income of $22.7 million, or $0.81 per basic and $0.80 per fully diluted common share for the fourth quarter of 2008, compared to $2.6 million, or $0.10 per basic and fully diluted common share for the fourth quarter of 2007.

Net income for the fourth quarter of 2008 included a tax benefit of $20.1 million, or $0.71 per fully diluted common share, related to the reversal of the Company's valuation allowance on its deferred tax assets.

Net income for the year ended December 31, 2008 was $32.9 million, or $1.18 per basic and $1.16 per fully diluted common share, compared to $7.2 million, or $0.26 per basic and fully diluted common share for the year ended December 31, 2007. Net income for the year ended December 31, 2008 includes a tax benefit of $20.1 million, or $0.71 per fully diluted common share, related to the reversal of the Company's valuation allowance on its deferred tax assets.

Revenues for the fourth quarter of 2008 increased 2 percent to $25.5 million compared to $25.1 million for the fourth quarter of 2007. Excluding orthopaedic tissue processing revenues of $63,000 and $552,000 for the fourth quarters of 2008 and 2007, respectively, total revenues increased 4 percent for the fourth quarter of 2008.

Revenues for the year ended December 31, 2008 increased 11 percent to $105.1 million compared to $94.8 million for the year ended December 31, 2007. Excluding orthopaedic tissue processing revenues of $725,000 and $4.2 million in the years ended December 31, 2008 and December 31, 2007, respectively, total revenues increased 15 percent for the year ended 2008.

As of December 31, 2008, the company had $22.8 million in cash, cash equivalents, and marketable securities, compared to $17.4 million at December 31, 2007. Of the $22.8 million in cash, cash equivalents, and marketable securities on hand at December 31, 2008, $1.6 million was received from the U.S. Department of Defense as advance funding for the development of BioFoam protein hydrogel technology and $5 million was designated as long-term restricted money market funds due to a financial covenant requirement under the Company's credit agreement. During 2008, the company used $4.5 million of cash to pay off its previous line of credit facility.

Steven Anderson, president and chief executive officer, said: “In spite of challenging economic conditions, 2008 represents our third consecutive year of profitability, with increased margins and operating results. We believe that we are well positioned to set records in both revenue and operating income in 2009."