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Last updated on April 24, 2014 at 16:36 EDT

Thoratec® Reports Third Quarter 2013 Results

October 30, 2013

- Revenue of $126.4 million for the third quarter of 2013, an increase of 7% year-over-year

PLEASANTON, Calif., Oct. 30, 2013 /PRNewswire/ — Thoratec Corporation (NASDAQ: THOR), a world leader in device-based mechanical circulatory support therapies to save, support and restore failing hearts, today reported its financial results for the third quarter of 2013.

“Thoratec generated strong results during the third quarter, highlighted by continued growth in our HeartMate II(®) and CentriMag(® )product lines,” said Gary F. Burbach, President and Chief Executive Officer. “We continue to drive expansion of the worldwide market for MCS therapy and delivered international revenue growth of 32% during the quarter,” he added.

For the quarter ended September 28, 2013, Thoratec reported revenues of $126.4 million, a seven percent increase over revenues of $117.8 million in the third quarter of 2012. Net income on a GAAP basis was $18.9 million, or $0.32 per diluted share, compared with GAAP net income of $24.3 million, or $0.41 per diluted share, in the same period a year ago. Non-GAAP net income, which is described later in this press release, was $28.5 million, or $0.49 per diluted share, compared with non-GAAP net income of $29.2 million, or $0.49 per diluted share, in the same period a year ago.

For the first nine months of fiscal 2013, revenues were $374.6 million, an increase of three percent over revenues of $363.2 million in the same period a year ago. Net income on a GAAP basis was $60.3 million, or $1.03 per diluted share, compared with GAAP net income of $70.6 million, or $1.18 per diluted share, in the same period a year ago. Non-GAAP net income was $82.8 million, or $1.42 per diluted share, compared with non-GAAP net income of $86.6 million, or $1.45 per diluted share, in the same period a year ago.

“We remain solidly on track to achieve our targets for 2013 and continue to invest in strategies to promote sustainable long term growth, while strengthening our industry leading position within the field of mechanical circulatory support,” Burbach commented. “Moreover, we look forward to advancing the therapy through our ongoing global market development initiatives, as well as the initiation of clinical trials for our exciting HeartMate III and HeartMate PHP pipeline programs.”

Third Quarter and First Nine Months of 2013 Financial Results

Thoratec reported revenues of $126.4 million in the third quarter of 2013, an increase of seven percent compared to the same quarter last year. The HeartMate product line contributed $112.8 million, an increase of seven percent, driven primarily by expansion of our international business and the Pocket Controller(TM) launch, while the CentriMag product line contributed $10.4 million, an increase of 39 percent.

For the first nine months of 2013, Thoratec reported revenues of $374.6 million, an increase of three percent, compared to the same period last year. The HeartMate product line contributed $331.4 million to revenues, an increase of two percent compared to the same period last year, while the CentriMag product line contributed $32.3 million, an increase of 33 percent.

GAAP gross margin in the third quarter of 2013 was 67.6 percent compared to 69.3 percent in the same quarter last year. The decrease in GAAP gross margin was due primarily to costs associated with the introduction of the Pocket Controller and the impact of the U.S. medical device excise tax, which we recorded for the first time at the beginning of 2013. Non-GAAP gross margin, described later in this press release, was 69.4 percent compared to 71.4 percent in the same quarter last year.

GAAP operating expenses in the third quarter of 2013 were $63.1 million compared to $48.9 million in the same quarter last year. The increase in GAAP operating expenses was due primarily to our product and market development initiatives, the acquisition of DuraHeart® II, and an increase in estimated future milestone payments related to our acquisition of Levitronix Medical. Non-GAAP operating expenses, described later in this press release, were $51.5 million compared to $43.2 million in the same quarter last year.

The company’s GAAP effective tax rate in the third quarter of 2013 was 17.5 percent versus 27.2 percent a year ago. The decrease in the GAAP effective tax rate was due primarily to the reduction of reserves related to a prior year’s tax return. The non-GAAP tax rate, which is described later in this press release, was 22.8 percent versus 29.6 percent in the same period last year.

Cash and investments were $283.0 million as of September 28, 2013, compared to $270.9 million as of June 29, 2013, and $260.4 million as of December 29, 2012. During the third quarter of 2013 the company used $40.0 million in cash to fund share repurchase activity.

GUIDANCE

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. For a more detailed discussion of forward-looking statements, please see the additional information below.

The company is narrowing guidance for fiscal 2013 revenues to a range of $500 million to $505 million compared with the previous guidance range of $490 million to $510 million. The company is increasing guidance for fiscal 2013 net income per diluted share to a range of $1.30 to $1.35 on a GAAP basis and $1.80 to $1.85 on a non-GAAP basis. The revised guidance for both GAAP and non-GAAP net income per diluted share includes approximately $0.05 related to the tax benefit recorded during the third quarter of 2013, while GAAP guidance also includes approximately $0.05 of incremental expense related to an increase in our estimate of future acquisition-related milestone payments.

CONFERENCE CALL/WEBCAST INFORMATION

Thoratec will hold a conference call to discuss its financial results and operating activities for all interested parties at 1:30 p.m., Pacific Daylight Time (4:30 p.m., Eastern Daylight Time), today. The teleconference can be accessed by calling (785) 830-7979, passcode 3911160. Please dial in 10-15 minutes prior to the beginning of the call. The webcast will be available via the Internet at http://www.thoratec.com. A replay of the conference call will be available through Thursday, November 7, via http://www.thoratec.com or by telephone at (719) 457-0820, passcode 3911160.

GAAP TO NON-GAAP RECONCILIATION

Thoratec management evaluates and makes operating decisions using various measures. These measures are generally based on revenues generated by the company’s products and certain costs of producing those revenues, such as costs of product sales, research and development and selling, general and administrative expenses. We use the following measures, which are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”): non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP tax rate, non-GAAP net income, non-GAAP net income per diluted share and non-GAAP shares used to compute diluted net income per share. These are non-GAAP financial measures under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. These non-GAAP financial measures are calculated by excluding certain GAAP financial items that we believe have less significance to the day-to-day operation of our business. The company has outlined below the type and scope of these exclusions and the limitations on the use of the non-GAAP financial measures as a result of these exclusions.

Management uses these non-GAAP financial measures for financial and operational decision making, including in the determination of employee annual cash incentive compensation, as a means to evaluate period-to-period comparisons, as well as comparisons to our competitors’ operating results. Management also uses this information internally for forecasting and budgeting, as it believes that the measures are indicative of Thoratec core operating results. Management also believes that non-GAAP financial measures provide useful supplemental information to management and investors regarding the performance of the company’s business operations, provide a greater transparency with respect to key metrics used by management in its decision making, facilitate comparisons of results for current periods and guidance for future periods with our historical operating results, and assist in analyzing future trends.

Non-GAAP net income consists of GAAP net income, excluding, as applicable, the tax effected impact of share-based compensation expense, the amortization of purchased intangible assets, acquisition-related transaction costs, acquisition-related contingent consideration adjustments, and Levitronix Medical fair market value (FMV) inventory adjustments related to the acquisition.

Non-GAAP net income per diluted share is defined as non-GAAP net income divided by the weighted average number of shares on a fully-diluted basis.

Non-GAAP shares used to compute diluted net income per share consists of GAAP shares used to compute diluted net income per share adjusted for any exclusions made in conjunction with the application of the two-class method for calculating net income per share.

Non-GAAP gross profit and gross margin consist of GAAP gross profit and gross margin excluding share-based compensation expense, the amortization of purchased intangible assets, and Levitronix Medical FMV inventory adjustments related to the acquisition.

Non-GAAP operating expenses consist of GAAP operating expenses excluding share-based compensation expense, amortization of purchased intangible assets, acquisition-related transaction costs, and acquisition-related contingent consideration adjustments.

Non-GAAP tax expense consists of the GAAP tax expense adjusted for the tax effect of the adjustments from GAAP net income to non-GAAP net income.

Management believes that it is useful in measuring Thoratec’s operations to exclude the amortization of purchased intangible assets. These costs are primarily fixed at the time of an acquisition and, unlike other fixed costs that result from ordinary operations, are the result of infrequent and irregular events.

Because of varying valuation methodologies, subjective assumptions and the variety of award types that companies can use, Thoratec management believes that providing non-GAAP financial measures that exclude share-based compensation allow investors to compare Thoratec’s recurring core business operating results to those of other companies and over multiple periods. The exclusion also enhances investors’ ability to review Thoratec’s business from the same perspective as Thoratec management, which believes that share-based compensation expense is not directly attributable to the underlying performance of the company’s business operations.

To enable investors to compare Thoratec’s recurring core business operating results to those of other companies and over multiple periods, Thoratec has excluded Levitronix Medical FMV inventory adjustments related to the acquisition as they are infrequent in nature.

There are a number of limitations related to the use of non-GAAP financial measures. First, non-GAAP financial measures exclude some costs, namely share-based compensation, that are recurring expenses. Second, share-based compensation is part of an employee’s compensation package and as such may be useful for investors to consider. Third, the components of costs that we exclude in our non-GAAP financial measures may differ from components that our peer companies exclude when they report their results from operations.

Non-GAAP financial measures should not be considered as a substitute for measures of financial performance in accordance with GAAP. However, these measures may provide additional insight into Thoratec’s financial results. Investors and potential investors are strongly encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with their most directly comparable GAAP financial results and not to rely on any single financial measure to evaluate our business.

The reconciliations of the forward looking non-GAAP financial measures to the most directly comparable GAAP financial measures in the tables below include all information reasonably available to Thoratec at the date of this press release. These tables include adjustments that we can reasonably predict. Events that could cause the reconciliation to change include acquisitions and divestitures of business, goodwill and other asset impairments and sales of marketable equity securities.

The following table includes the GAAP Condensed Consolidated Statements of Operations for the three and nine month periods ended September 28, 2013 and September 29, 2012:

                                                              THORATEC CORPORATION

                                                 Condensed Consolidated Statements of Operations

                                                                   (Unaudited)

                                                    (in thousands, except for per share data)

                    Three Months Ended                   Nine Months Ended
                    ------------------                  -----------------

                    September 28, 2013                  September 29, 2012                       September 28, 2013           September 29, 2012
                    ------------------                  ------------------                       ------------------           ------------------

    Product
     sales                             $126,444                            $117,768                                 $374,648                     $363,196

    Cost of
     product
     sales                               40,958                              36,162                                  117,031                      111,071

    Gross profit                         85,486                              81,606                                  257,617                      252,125
                                         ------                              ------                                  -------                      -------

    Operating
     expenses:

    Selling,
     general and
     administrative                      37,679                              28,478                                  107,348                       91,692

    Research and
     development                         25,469                              20,382                                   71,488                       59,886

    Total
     operating
     expenses                            63,148                              48,860                                  178,836                      151,578
                                         ------                              ------                                  -------                      -------

    Income from
     operations                          22,338                              32,746                                   78,781                      100,547

    Other income
     and
     (expense):

    Interest
     expense                                  -                                   -                                       (4)                          (3)

    Interest
     income and
     other                                  569                                 579                                    1,899                        1,401

    Income
     before
     income
     taxes                               22,907                              33,325                                   80,676                      101,945

    Income tax
     expense                             (4,003)                             (9,070)                                 (20,413)                     (31,396)
                                         ------                              ------                                  -------                      -------

    Net income                          $18,904                             $24,255                                  $60,263                      $70,549
                                        =======                             =======                                  =======                      =======

    Net income
     per share

    Basic                                 $0.33                               $0.41                                    $1.05                        $1.20
                                          =====                               =====                                    =====                        =====

    Diluted                               $0.32                               $0.41                                    $1.03                        $1.18
                                          =====                               =====                                    =====                        =====

    Shares used
     to compute
     net income
     per share:

    Basic                                57,427                              58,762                                   57,447                       58,645

    Diluted                              58,234                              59,669                                   58,400                       59,609

The following table presents our quarterly revenues by source for the first, second, and third quarter of fiscal 2013 and the four quarters of fiscal 2012:

                                                                                                                THORATEC CORPORATION

                                                                                                             Quarterly Revenue Analysis

                                                                                                                    (Unaudited)

                                                                                                                   (in millions)

                                                Three Months Ended
                                               ------------------

                            September 28, 2013                     June 29, 2013        March 30, 2013                          December 29, 2012        September 29, 2012        June 30, 2012        March 31, 2012
                            ------------------                     -------------        --------------                          -----------------        ------------------        -------------        --------------

    Revenue by Product Line

    HeartMate                                  $112.8                            $115.7                $102.9                                     $110.8                    $105.9               $106.2                $111.7

    CentriMag
     (1)                                         10.4                              11.5                  10.4                                       11.5                       7.5                  8.0                   8.7

    PVAD &
     IVAD                                         2.6                               2.7                   3.8                                        5.6                       3.8                  3.8                   5.8

    Other                                         0.6                               0.6                   0.6                                        0.6                       0.6                  0.6                   0.6

    Total                                      $126.4                            $130.5                $117.7                                     $128.5                    $117.8               $118.6                $126.8
                                               ======                            ======                ======                                     ======                    ======               ======                ======

    Revenue by Category

    Pump                                        $87.1                             $93.5                 $84.3                                      $93.0                     $85.0                $85.7                 $92.6

    Non-Pump                                     38.7                              36.4                  32.8                                       34.9                      32.2                 32.3                  33.6

    Other                                         0.6                               0.6                   0.6                                        0.6                       0.6                  0.6                   0.6
                                                  ---                               ---                   ---                                        ---                       ---                  ---                   ---

    Total                                      $126.4                            $130.5                $117.7                                     $128.5                    $117.8               $118.6                $126.8
                                               ======                            ======                ======                                     ======                    ======               ======                ======

    Revenue by Geography

    United
     States                                     $99.6                             $98.8                 $92.3                                     $102.0                     $97.5                $97.1                $103.9

    International                                26.8                              31.7                  25.4                                       26.5                      20.3                 21.5                  22.9
                                                 ----                              ----                  ----                                       ----                      ----                 ----                  ----

    Total                                      $126.4                            $130.5                $117.7                                     $128.5                    $117.8               $118.6                $126.8
                                               ------                            ------                ------                                     ------                    ------               ------                ------

The following table presents our quarterly pump units by geography for the first, second and third quarter of fiscal 2013 and the four quarters of fiscal 2012:



                                                      THORATEC CORPORATION

                                                      Quarterly Pump Units

                                                           (Unaudited)

                           Three months ended
                           ------------------

    Units by      September 28, 2013        June 29,   March 30,        December 29, 2012  September 29, 2012   June 30,   March 31,
     Geography                                2013        2013                                                     2012       2012
                   ------------------      ---------  ----------         -----------------  ------------------ ---------  ----------

    United
     States                       737             770         716                      812                 781        773         838

    International                 250             287         219                      254                 208        212         219

    Total (1)                     987           1,057         935                    1,066                 989        985       1,057
                                  ===           =====         ===                    =====                 ===        ===       =====

    (1) Excludes CentriMag and
     PediMag/PediVAS units

The following table reconciles the specific items excluded from GAAP net income in the calculation of non-GAAP net income and diluted net income per share for the periods shown below:



                                                                   THORATEC CORPORATION

                                                      Reconciliation of GAAP to Non-GAAP Net Income

                                                                       (Unaudited)

                                                        (in thousands, except for per share data)

                          Three Months Ended              Nine Months Ended
                         ------------------               -----------------

    Net income
     reconciliation      September 28, 2013              September 29, 2012                         September 28, 2013          September 29, 2012
                         ------------------              ------------------                         ------------------          ------------------

    Net income on a
     GAAP basis                              $18,904                              $24,255                              $60,263                     $70,549

    Share-based
     compensation
     expense:

         -Cost of
          product sales                          586                                  548                                1,773                       1,525

         -Selling,
          general and
          administrative                       4,373                                3,442                               12,681                       9,829

         -Research and
          development                          1,895                                1,576                                5,773                       4,678

    Amortization of
     purchased
     intangibles:

         -Cost of
          product sales                        1,721                                2,066                                5,138                       6,209

         -Selling,
          general and
          administrative                         741                                  587                                2,241                       1,789

         -Research and
          development                            132                                   83                                  295                         246

    Acquisition-
     related
     contingent
     consideration
     adjustments:

         -Selling,
          general and
          administrative                       3,847                                    -                                3,847                           -

         -Research and
          development                             67                                    -                                   67                           -

    Levitronix
     Medical FMV
     inventory
     adjustments                                   -                                 (102)                                   -                         530

    Acquisition-
     related
     transaction
     costs                                       621                                    -                                1,965                           -

    Income tax
     effect of non-
     GAAP
     adjustments                              (4,412)                              (3,225)                             (11,241)                     (8,737)

    Net income on a
     non-GAAP basis                          $28,475                              $29,230                              $82,802                     $86,618
                                             =======                              =======                              =======                     =======

                          Three Months Ended              Nine Months Ended
                         ------------------               -----------------

    Diluted net
     income per
     share
     reconciliation      September 28, 2013              September 29, 2012                         September 28, 2013          September 29, 2012
                         ------------------              ------------------                         ------------------          ------------------

    Diluted net
     income per
     share on a GAAP
     basis                                     $0.32                                $0.41                                $1.03                       $1.18

    Share-based
     compensation
     expense:

         -Cost of
          product sales                         0.01                                 0.01                                 0.03                        0.03

         -Selling,
          general and
          administrative                        0.08                                 0.06                                 0.22                        0.16

         -Research and
          development                           0.03                                 0.03                                 0.10                        0.08

    Amortization of
     purchased
     intangibles:

         -Cost of
          product sales                         0.03                                 0.03                                 0.09                        0.10

         -Selling,
          general and
          administrative                        0.01                                 0.01                                 0.04                        0.03

         -Research and
          development                              -                                    -                                    -                           -

    Acquisition-
     related
     contingent
     consideration
     adjustments:

         -Selling,
          general and
          administrative                        0.07                                    -                                 0.07                           -

         -Research and
          development                              -                                    -                                    -                           -

    Levitronix
     Medical FMV
     inventory
     adjustments                                   -                                (0.01)                                   -                        0.01

    Acquisition-
     related
     transaction
     costs                                      0.01                                    -                                 0.03                           -

    Income tax
     effect of non-
     GAAP
     adjustments                               (0.07)                               (0.05)                               (0.19)                      (0.14)

    Diluted net
     income per
     share on a non-
     GAAP basis                                $0.49                                $0.49                                $1.42                       $1.45
                                               =====                                =====                                =====                       =====

                          Three Months Ended              Nine Months Ended
                         ------------------               -----------------

                         September 28, 2013              September 29, 2012                         September 28, 2013          September 29, 2012
                         ------------------              ------------------                         ------------------          ------------------

    Shares used to
     compute diluted
     net income per
     share
     reconciliation

    Shares used in
     calculation of
     diluted net
     income per
     share --GAAP                             58,234                               59,669                               58,400                      59,609

    Weighted average
     unvested
     restricted
     stock awards
     (1)                                           -                                    -                                    -                          17

    Shares used in
     calculation of
     diluted net
     income per
     share -- non-
     GAAP                                     58,234                               59,669                               58,400                      59,626
                                              ======                               ======                               ======                      ======

    (1)  The company adopted the two-
     class method in calculating net
     income per share on a GAAP basis,
     which excludes the weighted average
     unvested restricted stock awards
     outstanding of 17,000 for the nine
     months ended  September 29, 2012.

The following table reconciles the specific items excluded from GAAP gross profit and gross margin in the calculation of non-GAAP gross profit and gross margin for the periods shown below:

                                                                  THORATEC CORPORATION

                                                     Reconciliation of GAAP to Non-GAAP Gross Profit

                                                                       (Unaudited)

                                                                     (in thousands)

                   Three Months Ended                Nine Months Ended
                  ------------------                 -----------------

                  September 28, 2013                September 29, 2012                               September 28, 2013                September 29, 2012
                  ------------------                ------------------                               ------------------                ------------------

    Gross profit
     on a GAAP
     basis                            $85,486 67.6%                       $81,606           69.3%                       $257,617 68.8%                    $252,125 69.4%

    Share-based
     compensation
     expense                              586                                 548                                          1,773                             1,525

    Amortization
     of
     intangibles                        1,721                               2,066                                          5,138                             6,209

    Levitronix
     Medical FMV
     inventory
     adjustments                            -                                (102)                                             -                               530

    Gross profit
     on a non-
     GAAP basis                       $87,793 69.4%                       $84,118           71.4%                       $264,528 70.6%                    $260,389 71.7%
                                      =======                             =======                                       ========                          ========

The following table reconciles the specific items excluded from GAAP operating expenses in the calculation of non-GAAP operating expenses for the periods shown below:

                                                                                          THORATEC CORPORATION

                                                                         Reconciliation of GAAP to Non-GAAP Operating Expenses

                                                                                              (Unaudited)

                                                                                             (in thousands)

                                             Three Months Ended                     Nine Months Ended
                                            ------------------                      -----------------

                                            September 28, 2013                     September 29, 2012                          September 28, 2013           September 29, 2012
                                            ------------------                     ------------------                          ------------------           ------------------

     Operating
      expenses on
      a GAAP
      basis                                                     $63,148                                  $48,860                                  $178,836                     $151,578

    Share-based
     compensation
     expense:

         -Selling,
          general and
          administrative                                         (4,373)                                  (3,442)                                  (12,681)                      (9,829)

         -Research
          and
          development                                            (1,895)                                  (1,576)                                   (5,773)                      (4,678)

    Amortization
     of purchased
     intangibles:

         -Selling,
          general and
          administrative                                           (741)                                    (587)                                   (2,241)                      (1,789)

         -Research
          and
          development                                              (132)                                     (83)                                     (295)                        (246)

    Acquisition-related contingent consideration
     adjustments:

         -Selling,
          general and
          administrative                                         (3,847)                                       -                                    (3,847)                           -

         -Research
          and
          development                                               (67)                                       -                                       (67)                           -

    Acquisition-
     related
     transaction
     costs                                                         (621)                                       -                                    (1,965)                           -

     Operating
      expenses on
      a non-GAAP
      basis                                                     $51,472                                  $43,172                                  $151,967                     $135,036
                                                                =======                                  =======                                  ========                     ========

The following table reconciles the GAAP tax expense for the adjustments from GAAP net income to non-GAAP net income:

                                                                    THORATEC CORPORATION

                                                       Reconciliation of GAAP to Non-GAAP Tax Expense

                                                                         (Unaudited)

                                                                       (in thousands)

                    Three Months Ended                                               Nine Months Ended
                   ------------------                                               -----------------

                   September 28, 2013                September 29, 2012                                September 28, 2013                September 29, 2012
                   ------------------                ------------------                                ------------------                ------------------

    Tax expense
     on a GAAP
     basis                             $4,003  17.5%                        $9,070           27.2%                        $20,413  25.3%                    $31,396  30.8%

    Share-based
     compensation
     expense                            3,261                                1,694                                          8,808                             6,170

    Amortization
     of purchased
     intangibles                          915                                1,007                                          2,701                             3,031

    Excess
     compensation
     limitations
     and other                           (212)                                 565                                         (1,231)                             (675)

    Acquisition-
     related
     contingent
     consideration
     adjustments                          209                                    -                                            209                                 -

    Levitronix
     Medical FMV
     inventory
     adjustments                            -                                  (41)                                             -                               211

    Acquisition-
     related
     transaction
     costs                                239                                    -                                            754                                 -

    Tax expense
     on a non-
     GAAP basis                        $8,415  22.8%                       $12,295           29.6%                        $31,654  27.7%                    $40,133  31.7%
                                       ======                              =======                                        =======                           =======

The following table reconciles the net income per diluted share guidance on a tax-effected GAAP basis and non-GAAP basis for the periods shown below:

                                        THORATEC CORPORATION

                    Reconciliation of GAAP to Non-GAAP  Forward-Looking Guidance

                                            (Unaudited)

                             (in thousands, except for per share data)

    Net                             For the Fiscal Year Ended
     income                                    2013
     per
     diluted
     share
     reconciliation
                                      -------------------------

                                              From                                To
                                              ----                               ---

    Net
     income
     per
     diluted
     share
     on a
     GAAP
     basis                                                $1.30                      $1.35

     Acquisition-
     related
     contingent
     consideration
     adjustments                                           0.05                       0.05

     Acquisition-
     related
     transaction
     costs                                                 0.02                       0.02

    Share-
     based
     compensation
     expense                                               0.34                       0.34

     Amortization
     of
     purchased
     intangibles                                           0.13                       0.13

    Tax rate
     effect
     on Non-
     GAAP
     earnings                                             (0.04)                     (0.04)

    Net
     income
     per
     diluted
     share
     on a
     non-
     GAAP
     basis                                                $1.80                      $1.85
                                                          =====                      =====

About Thoratec

Thoratec is the world leader in mechanical circulatory support with the broadest product portfolio to treat the full range of clinical needs for patients suffering from advanced heart failure. The company’s products include the HeartMate LVAS and Thoratec VAD, with more than 20,000 devices implanted in patients suffering from heart failure. Thoratec also manufactures and markets the CentriMag and PediMag / PediVAS product lines. Thoratec is headquartered in Pleasanton, California. For more information, visit www.thoratec.com.

Thoratec, the Thoratec logo, HeartMate and HeartMate II are registered trademarks of Thoratec Corporation and HeartMate III, HeartMate PHP, IVAD and Pocket Controller are trademarks of Thoratec Corporation. CentriMag and PediMag are registered trademarks of Thoratec LLC, and PediVAS is a registered trademark of Thoratec Switzerland GmbH.

DuraHeart is a registered trademark of Terumo Corporation.

Many of the preceding paragraphs, particularly but not exclusively those addressing guidance for fiscal 2013 financial results or future performance contain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can be identified by the words, “believes,” “views,” “expects,” “plans,” “projects,” “hopes,” “could,” “will,” “estimates,” and other similar words. Actual results, events or performance could differ materially from these forward-looking statements based on a variety of factors, many of which are beyond Thoratec’s control. Therefore, readers are cautioned not to put undue reliance on these statements. Investors are cautioned that all such statements involve risks and uncertainties, including risks related to regulatory approvals, the development of new products, including development and clinical trial timing, and new markets including Destination Therapy, the growth of existing markets for our products, customer and physician acceptance of Thoratec products, changes in the mix of existing markets for our products and related gross margin for such product sales, the ability to improve financial performance, the effects of FDA regulatory requirements, our ability to address quality issues adequately and on a timely basis without a resulting recall of products or interruption of manufacturing or shipment of products, the effects of healthcare reimbursement and coverage policies, the effects of seasonality on Thoratec product sales, the effects of competition and the effects of any merger, acquisition and divestiture related activities. Forward-looking statements contained in this press release should be considered in light these factors and those factors discussed from time to time in Thoratec’s public reports filed with the Securities and Exchange Commission, such as those discussed under the heading, “Risk Factors,” in Thoratec’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other SEC filings. These forward-looking statements speak only as of the date hereof. Thoratec undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.

SOURCE Thoratec Corporation


Source: PR Newswire