     |
|
|
|
|
|
|
|||||
Volcano
Corporation Reports
49 Percent Increase in Revenues IVUS Disposable Sales Increase 33 Percent |
|||||
Volcano expects revenues of approximately $125.0 million, which compares to prior revenue guidance of approximately $120.0 million. The company continues to expect gross margin for the year will be 60-61 percent and operating expenses to be 67-69 percent of revenues, as the company intends to accelerate its plan to increase its sales force and to build out its infrastructure to support future growth. The company expects to report a net loss on a GAAP basis of approximately $0.14 per share, compared to prior guidance of $0.15 per share. Weighted average basic shares outstanding are expected to be approximately 38.3 million at year end. Excluding stock-based compensation, Volcano expects to report net income of approximately $0.04 per diluted share, versus prior guidance of $0.03 per diluted share, assuming weighted average diluted shares outstanding at year-end of approximately 41.9 million. Conference Call The company will hold a conference call today at 2 p.m. Pacific Daylight Time (5 p.m. Eastern Daylight Time). The teleconference can be accessed by calling (913) 312-1293, passcode 4758002, or via the company's website at www.volcanocorp.com Please dial in or access the website 10-15 minutes prior to the beginning of the call. A replay of the conference call will be available until May 14, at (719) 457-0820, passcode 4758002, and via the company's website. Volcano Corporation Volcano Corporation offers a broad suite of devices designed to facilitate endovascular procedures, enhance the diagnosis of vascular and structural heart diseases and guide optimal therapies. The company's intravascular ultrasound (IVUS) product line includes ultrasound consoles that can be integrated directly into virtually any modern cath lab. Volcano IVUS offers unique features, including both single-use phased array and rotational IVUS imaging catheters, and advanced functionality options, such as VH(TM) IVUS tissue characterization. Volcano also provides functional measurement (FM) consoles and single-use pressure and flow guide wires. Currently, more than 2,600 Volcano IVUS and FM systems are installed worldwide, with approximately half of its revenues coming from outside the United States. For more information, visit the company's website at www.volcanocorp.com Use of Non-GAAP Financial Measures This press release includes certain non-GAAP financial information as defined by the U.S. Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, a reconciliation of this non-GAAP financial information to our financial statements as prepared under generally accepted accounting principles in the United States (GAAP) is included in this press release. Non-GAAP financial measures provide an indication of our performance before certain charges. Our management believes that in order to properly understand our short-term and long-term financial trends, investors may wish to consider the impact of these charges. These charges result from facts and circumstances that vary in frequency and/or impact on continuing operations. Our management believes that these items should be excluded when comparing our current operating results with those of prior periods as stock- based compensation is a non-cash expense. In addition, our management uses results of operations before these certain charges to evaluate the operational performance of the company and as a basis for strategic planning. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial measures in accordance with GAAP. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release regarding Volcano's business that are not historical facts may be considered "forward-looking statements," including statements regarding the company's financial guidance for 2007, expectations and outcomes regarding current and potential collaborations with other companies, the impact of clinical and other technical data, the safety and efficacy of the company's products, the success and timing of product development and clinical trial programs, market development and product use, and regulatory approvals. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Volcano's results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from the results predicted are detailed in the company's annual report on Form 10-K and other filings made with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Volcano undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
VOLCANO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
March 31, December 31
2007 2006
Assets
Current assets:
Cash and cash equivalents $54,385 $77,738
Short term investments
available for sale 42,484 17,787
Accounts receivable, net 22,725 21,575
Inventories 15,157 13,423
Prepaid expenses and other
current assets 2,189 2,208
Total current assets 136,940 132,731
Restricted cash 354 352
Property and equipment, net 10,043 9,333
Intangible assets, net 11,187 11,946
Other non-current assets 695 363
$159,219 $154,725
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $8,957 $8,209
Accrued compensation 6,203 5,993
Accrued expenses and other
current liabilities 4,556 5,292
Deferred revenues 3,480 2,675
Current maturities of long-
term debt 1,557 1,654
Total current liabilities 24,753 23,823
Long-term debt 44 66
Deferred license fee 1,313 1,375
Other 258 279
Total liabilities 26,368 25,543
Stockholders' equity 132,851 129,182
$159,219 $154,725
VOLCANO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
2007 2006
Revenues $29,579 $19,872
Cost of revenues 10,865 8,220
Gross profit 18,714 11,652
Operating expenses:
Selling, general and administrative 12,584 11,645
Research and development 4,688 4,553
Amortization of intangibles 786 774
Total operating expenses 18,058 16,972
Operating income (loss) 656 (5,320)
Interest expense (89) (1,312)
Interest and other income, net 1,317 291
Income (loss) before provision for income taxes 1,884 (6,341)
Provision for income taxes 210 33
Net income (loss) $1,674 $(6,374)
Net income (loss) per share - basic $0.04 $(0.93)
Net income (loss) per share - diluted $0.04 $(0.93)
Weighted-average shares outstanding
- basic 37,964 6,891
Weighted-average shares outstanding
- diluted 41,685 6,891
VOLCANO CORPORATION
RECONCILIATION OF GAAP AND NON-GAAP OPERATING RESULTS
(in thousands, except per share data)
(Unaudited)
Three Months Ended March 2007
Stock-based
GAAP compensation Non-GAAP
results expense results
Revenues $29,579 $- $29,579
Cost of revenues 10,865 (112) 10,753
Gross profit 18,714 112 18,826
Operating expenses:
Selling, general and
administrative 12,584 (923) 11,661
Research and development 4,688 (208) 4,480
Amortization of intangibles 786 - 786
Total operating expenses 18,058 (1,131) 16,927
Operating income 656 1,243 1,899
Interest expense (89) - (89)
Interest and other income, net 1,317 - 1,317
Income before provision for income
taxes 1,884 1,243 3,127
Provision for income taxes 210 - 210
Net income $1,674 $1,243 $2,917
Net income per share - basic $0.04 $0.03 $0.08
Net income per share - diluted $0.04 $0.03 $0.07
Weighted-average shares outstanding
- basic 37,964 37,964
Weighted-average shares outstanding
- diluted 41,685 41,685
Three Months Ended March 2006
Stock-based
GAAP compensation Non-GAAP
results expense results
Revenues $19,872 $- $19,872
Cost of revenues 8,220 (68) 8,152
Gross profit 11,652 68 11,720
Operating expenses:
Selling, general and
administrative 11,645 (506) 11,139
Research and development 4,553 (115) 4,438
Amortization of intangibles 774 - 774
Total operating expenses 16,972 (621) 16,351
Operating income (loss) (5,320) 689 (4,631)
Interest expense (1,312) - (1,312)
Interest and other income, net 291 - 291
Income (loss) before provision for
income taxes (6,341) 689 (5,652)
Provision for income taxes 33 - 33
Net income (loss) $(6,374) $689 $(5,685)
Net income (loss) per share - basic $(0.93) $0.10 $(0.83)
Net income (loss) per share - diluted $(0.93) $0.10 $(0.83)
Weighted-average shares outstanding
- basic 6,891 6,891
Weighted-average shares outstanding
- diluted 6,891 6,891
Use of Non-GAAP Financial Measures VOLCANO CORPORATION
REVENUE SUMMARY
(in millions)
(Unaudited)
Q1 '07 Q1 '06
IVUS Systems:
United States $3.7 $0.7
Japan 0.7 0.3
Europe 0.8 0.5
Rest of World 0.6 0.5
Total IVUS Systems $5.8 $2.0
IVUS Disposables:
United States $9.4 $7.6
Japan 6.1 4.5
Europe 3.2 2.1
Rest of World 0.6 0.3
Total IVUS Disposables $19.3 $14.5
FM:
United States $1.6 $1.3
Japan 0.7 0.5
Europe 1.2 0.9
Rest of World 0.2 0.1
Total FM $3.7 $2.8
Other 0.8 0.6
Total $29.6 $19.9
Source: Volcano Corporation
| |||||
Angioplasty.Org Home • PatientCenter send comments & suggestions to "info at angioplasty
dot org" |
|||||