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May 5, 2009 -- San Diego -Volcano Corporation (Nasdaq: VOLC), a leader in the development, manufacturing and sales of products for the diagnosis and treatment of coronary and peripheral artery disease, today reported revenues of $49.0 million for the first quarter of fiscal 2009.
For the first quarter of 2009, the company reported a GAAP net loss of $7.6 million, or $0.16 per share, versus a GAAP net loss of $2.3 million, or $0.05 per share, in the same period in 2008. Weighted average shares for the first quarter of 2009 were 48.0 million. Excluding stock-based compensation expense of $2.7 million, the company reported a net loss of $4.9 million, or $0.10 per share, in the first quarter of 2009. Excluding acquisition-related costs of $2.9 million, stock-based compensation expense of $2.1 million and in-process research and development expenses of $175,000, Volcano reported net income of $2.8 million, or $0.06 per diluted share, in the first quarter of 2008. A reconciliation of the company's GAAP and non-GAAP results can be found in today's earnings news release on the company's website at www.volcanocorp.com.
The company said that it is also accelerating its direct sales program in Japan and is in negotiations with Goodman, its largest Japanese distributor, regarding the transition, and expects to discontinue distribution through Goodman over the next two quarters. "We feel very positive about our market position and the momentum we have in Japan," Huennekens noted. "We now have nearly 40 sales representatives in the market and expect to add significantly to our infrastructure in Japan during the balance of the year as we move to assume direct control of our sales and marketing efforts there," he continued. Guidance Conference Call Volcano Corporation Use of Non-GAAP Financial Measures Forward-Looking Statements
VOLCANO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2009 2008
---- ----
(unaudited)
Assets
Current assets:
Cash and cash equivalents $106,532 $100,949
Short-term available-for-sale
investments 37,360 48,941
Accounts receivable, net 35,984 41,795
Inventories 31,147 28,936
Prepaid expenses and other current assets 4,736 5,869
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Total current assets 215,759 226,490
Restricted cash 288 327
Property and equipment, net 31,874 30,007
Intangible assets, net 14,648 15,636
Goodwill 901 842
Other non-current assets 1,959 2,177
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$265,429 $275,479
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $14,174 $14,867
Accrued compensation 10,084 12,690
Accrued expenses and other current
liabilities 8,833 10,745
Deferred revenues 5,224 5,872
Short-term debt - 151
Current maturities of long-term debt 58 57
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Total current liabilities 38,373 44,382
Long-term debt 20 34
Deferred license fee from a related party 813 875
Other 648 456
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Total liabilities 39,854 45,747
Stockholders' equity 225,575 229,732
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$265,429 $275,479
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VOLCANO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months
Ended March 31,
----------------
2009 2008
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Revenues $48,959 $36,647
Cost of revenues 20,649 13,629
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Gross profit 28,310 23,018
Operating expenses:
Selling, general and administrative 25,080 22,059
Research and development 8,769 5,637
In-process research and development - 175
Amortization of intangibles 1,052 773
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Total operating expenses 34,901 28,644
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Operating loss (6,591) (5,626)
Interest income 301 1,833
Interest expense (2) (4)
Exchange rate (loss) gain (1,128) 1,679
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Loss before provision for income taxes (7,420) (2,118)
Provision for income taxes 194 208
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Net loss $(7,614) $(2,326)
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Net loss per share-basic and diluted $(0.16) $(0.05)
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Shares used in calculating net loss per share-basic
and diluted 48,032 47,030
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VOLCANO CORPORATION
Reconciliation of GAAP Results to Non-GAAP Results
(in thousands, except per share data)
(Unaudited)
Three Months
Ended March 31,
----------------
2009 2008
---- ----
GAAP operating loss $(6,591) $(5,626)
Stock-based compensation 2,715 2,061
In-process research and development - 175
Acquisition due-diligence costs - 2,878
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Non-GAAP operating loss $(3,876) $(512)
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GAAP net loss $(7,614) $(2,326)
Stock-based compensation 2,715 2,061
In-process research and development - 175
Acquisition due-diligence costs - 2,878
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Non-GAAP net (loss) income $(4,899) $2,788
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GAAP net loss per share-basic $(0.16) $(0.05)
Stock-based compensation 0.06 0.04
In-process research and development - 0.01
Acquisition due-diligence costs - 0.06
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Non-GAAP net (loss) income per share-basic $(0.10) $0.06
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Shares used in calculating net income per share-
basic 48,032 47,030
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GAAP net loss per share-diluted $(0.16) $(0.05)
Stock-based compensation 0.06 0.04
In-process research and development - -
Acquisition due-diligence costs - 0.06
Adjustment to shares used in calculating net
income per share - 0.01
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Non-GAAP net (loss) income per share-diluted $(0.10) $0.06
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Shares used in calculating net income per share-
diluted 48,032 49,698
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VOLCANO CORPORATION
REVENUE SUMMARY
(in millions)
(Unaudited)
Three
months
ended Percentage
March 31, Change
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2009 2008 2008 to 2009
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Medical segment:
IVUS systems:
United States $5.0 $3.8 33%
Japan 1.2 0.9 28
Europe 1.6 1.2 35
Rest of world 0.7 0.5 27
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Total IVUS systems $8.5 $6.4 32
IVUS disposables:
United States $14.3 $11.6 23%
Japan 10.0 8.8 13
Europe 4.0 4.0 -
Rest of world 0.8 0.8 6
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Total IVUS disposables $29.1 $25.2 16
FM:
United States $3.6 $1.9 93%
Japan 0.3 0.2 33
Europe 2.1 1.5 41
Rest of world 0.3 0.1 80
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Total FM $6.3 $3.7 68
Other 1.7 1.3 32%
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Sub-total medical
segment $45.6 $36.6 24
Telecom segment 3.4 - -
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Total $49.0 $36.6 34
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Source: Volcano Corporation |
