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For the quarter ended March 31, 2010, Volcano reported revenues of $66.6 million compared with revenues of $49.0 million a year ago. For the first quarter of 2010, the company reported a net loss on a GAAP basis of $4.0 million, or $0.08 per share, versus a net loss on a GAAP basis of $7.6 million, or $0.16 per share, in the same period a year ago. Excluding stock-based compensation expense of $3.1 million and $2.7 million in the first quarter of 2010 and 2009, respectively, Volcano reported a net loss on a non-GAAP basis of $921,000, or $0.02 per share, versus a net loss on a non-GAAP basis of $4.9 million, or $0.10 per share, in the first quarter of 2009. "We continued to execute on our growth strategies by increasing the installed base of our multi-modality platforms and generating increased market share and utilization for our offerings," said Scott Huennekens, president and chief executive officer. "Key drivers of our year-over-year growth included a 58 percent increase in intravascular ultrasound (IVUS) disposable revenues in Japan, 46 percent growth in our U.S. functional measurement (FM) disposable sales and increased market penetration in Europe, where IVUS and FM disposable revenues increased 32 percent and 92 percent, respectively," he continued. "During the quarter, we continued our sales force expansion initiative and benefitted from our transition to a direct sales model in Japan. In addition, we pursued technology innovation and expect to introduce five product enhancements or new offerings during the balance of the year as we increase momentum, expand our tools to serve patients and clinicians and leverage our multi-modality platform. We also have more than one dozen clinical trials involving our current or future product offerings either underway or expected to begin enrollment in the near future," he added. Guidance for 2010 Conference Call Information About
Volcano Corporation Non-GAAP Financial Measures Forward-Looking Statements
VOLCANO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December
March 31, 31,
2010 2009
---- ----
(unaudited)
Assets
Current assets:
Cash and cash equivalents $60,475 $56,055
Short-term available-for-sale
investments 68,089 66,028
Accounts receivable, net 47,452 51,171
Inventories 38,032 37,710
Prepaid expenses and other current
assets 5,302 5,892
Total current assets 219,350 216,856
Restricted cash 533 554
Property and equipment, net 44,757 44,734
Intangible assets, net 13,094 11,623
Goodwill 931 931
Other non-current assets 2,112 2,036
$280,777 $276,734
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $15,185 $13,840
Accrued compensation 13,407 14,142
Accrued expenses and other current
liabilities 13,442 25,275
Deferred revenues 4,967 4,881
Current maturities of long-term debt 49 50
Total current liabilities 47,050 58,188
Long-term debt 98 110
Deferred revenues 2,512 2,376
Other 1,584 1,245
Total liabilities 51,244 61,919
Stockholders' equity 229,533 214,815
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$280,777 $276,734
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VOLCANO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
---------
2010 2009
---- ----
Revenues $66,572 $48,959
Cost of revenues 26,638 20,649
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Gross profit 39,934 28,310
Operating expenses:
Selling, general and administrative 33,079 25,080
Research and development 9,858 8,769
In-process research and development 32 -
Amortization of intangibles 573 1,052
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Total operating expenses 43,542 34,901
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Operating loss (3,608) (6,591)
Interest income 85 301
Interest expense (7) (2)
Exchange rate loss (121) (1,128)
Other, net (10) -
--- ---
Loss before provision for income taxes (3,661) (7,420)
Provision for income taxes 375 194
--- ---
Net loss $(4,036) $(7,614)
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Net loss per share-basic and diluted $(0.08) $(0.16)
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Shares used in calculating net loss per
share-basic and diluted 49,743 48,032
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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,
------------------
2010 2009
---- ----
GAAP operating loss $(3,608) $(6,591)
Stock-based compensation 3,083 2,715
In-process research and development 32 -
Non-GAAP operating loss $(493) $(3,876)
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GAAP net loss $(4,036) $(7,614)
Stock-based compensation 3,083 2,715
In-process research and development 32 -
Non-GAAP net loss $(921) $(4,899)
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GAAP net loss per share-basic and diluted $(0.08) $(0.16)
Stock-based compensation 0.06 0.06
In-process research and development - -
Non-GAAP net loss per share-basic and diluted $(0.02) $(0.10)
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Shares used in calculating net loss per
share-basic and diluted 49,743 48,032
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VOLCANO CORPORATION
REVENUE SUMMARY
(in millions)
(unaudited)
Three Months Percentage
Ended Change
March 31, ----------
---------
2009 to
2010 2009 2010
---- ---- --------
Medical segment:
Consoles:
United States $4.2 $5.0 (16)%
Japan 1.3 1.2 7
Europe 1.9 1.7 15
Rest of world 1.3 0.6 97
Total Consoles $8.7 $8.5 2
IVUS single-procedure
disposables:
United States $16.4 $14.2 14%
Japan 15.8 10.0 58
Europe 5.3 4.0 32
Rest of world 1.1 0.9 37
Total IVUS single-procedure
disposables $38.6 $29.1 32
FM single-procedure
disposables:
United States $5.3 $3.6 46%
Japan 0.8 0.3 182
Europe 4.0 2.1 92
Rest of world 0.4 0.3 62
Total FM single-procedure
disposables $10.5 $6.3 69
Other $3.7 1.7 115%
Sub-total medical segment $61.5 $45.6 35
Industrial segment $5.1 3.4 52
Total $66.6 $49.0 36
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Source: Volcano Corporation |
