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Medical device manufacturer ICU Medical (Nasdaq:ICUI) announced Monday that its profits increased 35% as revenues rose.

ICU Medical develops, manufactures and sells medical technologies used in vascular therapy, oncology, and critical care applications. For the fourth quarter, the company posted $10.0 million in net income, or $0.72 per diluted share. This compares to profits of $7.4 million, or $0.50 per diluted share, in the year-ago period.

Revenue rose 8.3% to $75.6 million.

"Our growth during the fourth quarter was driven by strong performance of Custom Sets (IV systems), CLAVEs and new products, which was slightly offset by an expected decline in critical care compared to the same period last year," said CFO Scott Lamb.

Fourth quarter gross margins expanded 460 basis points year-over-year to 49.6% due to favorable product mixes and improved manufacturing efficiencies, the company said.

Looking ahead, ICU said it expects to generate revenue in the range of $295 million to $305 million for 2011, with diluted earnings between $2.25 to $2.45 per share.

For 2010, the California-based company posted net income of $30.9 million, or $2.23 per share on revenues of $284.6 million. At year-end, cash and equivalents stood at $93.4 million.

Disclosure: None

Source: ICU Medical's Q4 Profits Grow 35%