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Volcano Corporation Reports Third Quarter 2012 Results
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November 6, 2012 -- San Diego -- Volcano Corporation (NASDAQ: VOLC), a leading developer and manufacturer of precision guided therapy tools designed to enhance the diagnosis and treatment of coronary and peripheral vascular disease, today reported results for the third quarter of 2012.
For the quarter ended September 30, 2012, Volcano reported revenues of $93.7 million, an increase of nine percent on a reported basis and 12 percent on a constant currency basis after adjusting for a three percent negative impact from foreign currency. Medical segment revenues increased nine percent on a reported basis and 12 percent on a constant currency basis versus the third quarter a year ago.
The company reported net income of $2.0 million, or $0.04 per diluted share, in the third quarter of 2012, versus net income of $2.6 million, or $0.05 per diluted share, in the third quarter of 2011.
For the first nine months of 2012, Volcano reported revenues of $279.4 million, an increase of 11 percent on a reported basis and 12 percent on a constant currency basis versus the same period a year ago. The company reported net income of $5.5 million, or $0.10 per diluted share, compared with net income of $8.7 million, or $0.16 per diluted share, in the first nine months of 2011.
"Volcano demonstrated strong momentum in the quarter as we continued to execute on our functional PCI market development and market share strategies despite a challenging economic environment, particularly in Europe," said Scott Huennekens, president and chief executive officer.
"We generated a 13 percent increase in our disposable revenues on a constant currency basis, driven by the continued strong growth of our FFR (Fractional Flow Reserve) disposable business, where revenues grew 54 percent year-over-year on constant currency basis with solid increases across all of our key geographies," he noted.
"Helping to drive the growth of our FFR business is the growing volume of positive data, including the FAME II data that showed the use of FFR ensured that the right patients received stents and reduced revascularization and rehospitalization rates," Huennekens added. "The FAME II data has been augmented by the release of a number of important FFR studies at the recent Transcatheter Cardiovascular Therapeutics (TCT) conference that further portrayed FFR as not only the gold standard for determining ischemia, but also as an important contributor to achieving improved patient outcomes in a cost-effective manner."
"In addition to the release of favorable data at TCT, we received positive feedback from clinicians to new products and those in our development pipeline, including the newly-launched PrimeWire Prestige® PLUS pressure guide wire with AccuSense™ technology, which provides additional stability during long procedures," Huennekens noted.
"We also exhibited our new Visions® PV .035 Digital IVUS (Intravascular Imaging) catheter, which recently received market clearance in both the U.S. and Europe. These approvals represent an important milestone in our strategy to expand market adoption of IVUS in new indications as the device has applications in large vessels, such as atherectomy, venous and other complex lesion indications," he stated.
Guidance for 2012
The company provided updated guidance for fiscal 2012. The company now expects total revenues for 2012 will be in the range of $380-$384 million versus prior guidance of $384-$390 million, due to its transition to a direct sales model in Spain and continued softness in PCI activity, primarily in the U.S. It continues to expect gross margins of 65-66 percent. It now expects operating expenses will be 59-60 percent of revenues versus prior guidance of 58-59 percent of revenues. The company continues to expect earnings per diluted share of $0.18-$0.21 and that weighted average shares on a diluted basis for the year will be approximately 55.5 million shares.
Conference Call Information
The company will hold a conference call at 2 p.m., Pacific Standard Time (5 p.m., Eastern Standard Time) today. The teleconference can be accessed by calling (631) 291-4555, passcode 40234244, or via the company's website at http://www.volcanocorp.com. Please dial in or access the webcast 10-15 minutes prior to the beginning of the call. A replay of the conference call will be available through November 13 at (404) 537-3406, passcode 40234244, and via the company's website at http://www.volcanocorp.com.
About Volcano
Volcano Corporation is revolutionizing the medical device industry with a broad suite of technologies that make imaging and therapy simpler, more informative and less invasive. Our products empower physicians around the world with a new generation of analytical tools that deliver more meaningful information—using sound and light as the guiding elements. Founded in cardiovascular care and expanding into other specialties, Volcano is changing the assumption about what is possible in improving patient outcomes by combining imaging and therapy together. For more information, visit the company's website at www.volcanocorp.com.
Note Regarding Use of Non-GAAP Financial Measures
Volcano reports changes in revenue on a constant currency basis, which is a non-GAAP financial measure. Volcano believes that investors' understanding of the company's short-term and long-term financial trends is enhanced by taking into consideration the impact of foreign currency translation on revenue. In addition, Volcano's management uses results of operations before currency translation to evaluate the operational performance of Volcano and as a basis for strategic planning. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with U.S. 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." Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that may cause Volcano's actual results to differ materially and adversely from statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ include the risk that Volcano's revenue, expense, earnings, earnings per share, margin or tax rate projections may turn out to be inaccurate or Volcano may encounter unanticipated difficulty in achieving those projections; global and regional macroeconomic conditions, generally, and in the medical device and telecom industries specifically; currency exchange rate fluctuations; the effect of competitive factors and the company's reactions to those factors; purchasing decisions with respect to the company's products; the pace and extent of market adoption of the company's products and technologies; uncertainty in the process of obtaining regulatory approval or clearance for Volcano's products or devices; the success of Volcano's growth strategies; risks associated with Volcano's international operations; timing and achievement of product development milestones; outcome of ongoing or future litigation; the impact and benefits of market development; our ability to protect our intellectual property; dependence upon third parties; unexpected new data, safety and technical issues; market conditions and other risks inherent to medical and/or telecom device development and commercialization. These and additional risks and uncertainties are more fully described in Volcano's filings made with the Securities and Exchange Commission, including our most recent quarterly report on Form 10-Q, 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 disclaims any obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
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Source: Volcano
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