Net income at Closure Medical Corp. (Nasdaq: CLSR) jumped almost $5 million in 2003 on higher sales of its adhesive products.

The Raleigh-based company recorded full-year net income of $7.8 million, or 54 cents per share, compared to adjusted 2002 net income of $2.7 million.

The 2002 financials were adjusted because the company was required to report fully taxed earnings at a 36 percent tax rate, as well eliminate a tax benefit recorded during the period. Prior to the adjustment, the company had reported a net income of $10.1 million.

Closure’s full-year revenue in 2003 increased by 47 percent, totaling $35.0 million, compared to $23.7 million in 2002.

For the fourth quarter, net income at Closure was $2.3 million, or 15 cents per share, which compares to 2002 fourth quarter adjusted net income of $1.2 million, or 8 cents per share. Prior to the adjustment, the company had reported a fourth quarter 2002 net income of $7.7 million.

Closure’s fourth-quarter revenue increased by 40 percent to $9.5 million, from $6.8 million during the same period of 2002.

The company, which has a partnership with Johnson & Johnson, said its Dermabond adhesive continued to be the its main revenue generator, driven by the early 2003 introduction of High-Viscosity Dermabond, a thicker formulation.

“Our financial performance in 2003 was unprecedented for Closure, and we set forth a number of initiatives that we feel will provide a platform for long-term growth at Closure,” said Daniel Pelak, president and CEO of Closure. “–Looking ahead, we are excited about the prospects for 2004. The strategic plan we adopted last year calls for continuing extensions of the current product portfolio, as well as a road map for expanding the core technology into new products, applications and markets–.”

Closure said it expects revenue for the first quarter of 2004 to be in the range of $10.1 million to $10.7 million, and earnings per share are expected to be in the range of 13 cents to 16 cents. The company maintains its current full-year 2004 guidance for revenue of $45 million to $47 million and earnings of 65 cents to 70 cents per share.

Shares of CLSR closed at $33.32 on Thursday, a decrease of $1.84, or more than 5 percent, from the previous day’s close of $35.16. The stock’s 52-week range is roughly between $8 and $40.

Closure Medical: www.closuremed.com