Volcano Reports Full Year Revenues Increase 31 Percent
FOURTH QUARTER REVENUES INCREASE 23 PERCENT
For the year ended
For the fourth quarter of 2008, the company reported GAAP net income of
Excluding stock-based compensation expense of
For the full year 2008, the company reported a GAAP net loss of
“Volcano concluded 2008 in a very strong manner, executing on our market expansion and technology innovation initiatives, as well as our product pipeline development programs – both through our internal efforts and the three key acquisitions we completed during the year,” said
“As evidenced by our revenue growth, we continued to increase the market presence of our IVUS offerings, placing 330 IVUS consoles during the quarter versus 177 in the fourth quarter of 2007, or an increase of 86 percent. Importantly, most of these 330 IVUS consoles were multi-modality with FM capability as well. In total, we placed 867 IVUS consoles in 2008 versus 597 in 2007, an increase of 45 percent, and also experienced a commensurate growth in our IVUS disposable revenues, which grew 18 percent versus the fourth quarter of 2007 and 26 percent for the year. In addition, our FM business grew 36 percent in the quarter versus the fourth quarter of 2007. We also achieved gross margin improvement and leveraged our operating expenses, which enabled us to be profitable on a GAAP basis in the quarter.
“The patients and company are benefiting,” he continued, “from a continuing favorable environment for percutaneous coronary interventions, the proliferation of IVUS and FM integrated systems and the release of positive data, including the recent publication of trial data from FAME (Fractional Flow Reserve vs. Angiography for Multivessel Evaluation) in The New England Journal of Medicine that we believe will be a catalyst for our FM business going forward.
“We continue to build out our direct sales force in the U.S. and
Guidance for 2009
The company provided the following financial guidance for 2009
For its base IVUS and FM businesses, the company expects revenues of
Revenues attributable to Axsun Technologies, Inc., which the company acquired at the end of 2008 and will operate as a wholly-owned subsidiary, are expected to be in the range of
On a consolidated basis, Volcano expects total revenues in fiscal 2009 of
On a GAAP basis, the company expects to report a net loss of
Excluding stock-based compensation expense of approximately
The company said that excluding stock-based compensation expense, in-process research and development and acquisition due diligence costs, it expects results on a per diluted share basis will be impacted roughly
The company said that weighted average shares outstanding at year-end 2009 are expected to be approximately 48.2 million basic shares and 50.5 million diluted shares.
Conference Call
The company will hold a conference call at
Volcano Corporation
Volcano Corporation (NASDAQ: VOLC) offers a broad suite of devices designed to facilitate endovascular procedures, enhance the diagnosis of vascular and structural heart disease 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(R) IVUS tissue characterization and ChromaFlo(R). Volcano also provides functional measurement (FM) consoles and single-use pressure and flow guide wires and is developing a line of ultra-high resolution Optical Coherence Tomography (OCT) systems and catheters. Currently, more than 4,000 Volcano IVUS and FM systems are installed worldwide, with approximately half of its revenues coming from outside
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
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 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 2009, market adoption of the company’s technology, the impact of clinical and other technical data, the success and timing of product development, product introduction and clinical trial programs, growth strategies and market development and product sales. 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, quarterly reports 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 undertakes no 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.
VOLCANO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
December 31,
-------------
2008 2007
---- ----
Assets
Current assets:
Cash and cash equivalents $100,949 $122,913
Short-term available-for-sale investments 48,941 66,205
Accounts receivable, net 41,795 27,976
Inventories 28,936 21,243
Prepaid expenses and other current assets 5,869 3,997
----- -----
Total current assets 226,490 242,334
Restricted cash 327 365
Property and equipment, net 30,007 13,692
Intangible assets, net 15,636 9,385
Other non-current assets 2,177 798
----- ---
$274,637 $266,574
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $14,867 $11,077
Accrued compensation 12,690 9,083
Accrued expenses and other current
liabilities 9,903 6,600
Deferred revenues 5,872 5,360
Short-term debt 151 -
Current maturities of long-term debt 57 120
--- ---
Total current liabilities 43,540 32,240
Long-term debt 34 78
Deferred license fee 875 1,125
Other 456 194
--- ---
Total liabilities 44,905 33,637
Stockholders' equity 229,732 232,937
------- -------
$274,637 $266,574
======== ========
VOLCANO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------- --------------
2008 2007 2008 2007
---- ---- ---- ----
Revenues $49,253 $40,009 $171,495 $130,614
Cost of revenues 18,378 16,093 64,293 51,559
------ ------ ------ ------
Gross profit 30,875 23,916 107,202 79,055
Operating expenses:
Selling, general and
administrative 21,964 18,360 84,369 62,631
Research and development 7,867 5,074 26,690 20,315
In-process research and
development 274 26,188 12,681 26,188
Amortization of intangibles 788 754 3,125 3,067
--- --- ----- -----
Total operating expenses 30,893 50,376 126,865 112,201
------ ------ ------- -------
Operating income (loss) (18) (26,460) (19,663) (33,146)
Interest income 622 2,211 4,828 5,841
Interest expense (105) (6) (113) (199)
Exchange rate gain 718 410 1,809 1,452
Other, net 54 - 54 -
--- --- --- ---
Income (loss) before
(benefit from) provision
for income taxes 1,271 (23,845) (13,085) (26,052)
(Benefit from) provision for
income taxes (87) (102) 620 524
--- ---- --- ---
Net income (loss) $1,358 $(23,743) $(13,705) $(26,576)
====== ======== ======== ========
Net income (loss) per
share - basic $0.03 $(0.53) $(0.29) $(0.66)
===== ====== ====== ======
Net income (loss) per
share - diluted $0.03 $(0.53) $(0.29) $(0.66)
===== ====== ====== ======
Shares used in calculating
net income (loss) per share
- basic 47,793 44,939 47,376 40,024
====== ====== ====== ======
Shares used in calculating
net income (loss) per share
- diluted 50,286 44,939 47,376 40,024
====== ====== ====== ======
VOLCANO CORPORATION
Reconciliation of GAAP Results to Non-GAAP Results
(in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------- --------------
2008 2007 2008 2007
---- ---- ---- ----
GAAP operating loss $(18) $(26,460) $(19,663) $(33,146)
Stock-based compensation 2,541 1,988 9,537 6,691
In-process research and
development 274 26,188 12,681 26,188
Acquisition due-diligence
costs - - 2,878 -
--- --- ----- ---
Non-GAAP operating income
(loss) $2,797 $1,716 $5,433 $(267)
====== ====== ====== =====
GAAP net income (loss) $1,358 $(23,743) $(13,705) $(26,576)
Stock-based compensation 2,541 1,988 9,537 6,691
In-process research and
development 274 26,188 12,681 26,188
Acquisition due-diligence
costs - - 2,878 -
--- --- ----- ---
Non-GAAP net income $4,173 $4,433 $11,391 $6,303
====== ====== ======= ======
GAAP net income (loss) per
share - basic $0.03 $(0.53) $(0.29) $(0.66)
Stock-based compensation 0.05 0.04 0.20 0.17
In-process research and
development 0.01 0.58 0.27 0.65
Acquisition due-diligence
costs - - 0.06 -
--- --- ---- ---
Non-GAAP net income per share -
basic $0.09 $0.10 $0.24 $0.16
===== ===== ===== =====
Shares used in calculating net
income per share - basic 47,793 44,939 47,376 40,024
====== ====== ====== ======
GAAP net income (loss) per
share - diluted $0.03 $(0.53) $(0.29) $(0.66)
Stock-based compensation 0.04 0.04 0.19 0.15
In-process research and
development 0.01 0.55 0.25 0.61
Acquisition due-diligence
costs - - 0.06 -
Adjustment to shares used in
calculating net income per
share - 0.03 0.02 0.05
--- ---- ---- ----
Non-GAAP net income
per share - diluted $0.08 $0.09 $0.23 $0.15
===== ===== ===== =====
Shares used in calculating net
income per share - diluted 50,286 47,802 49,954 43,270
====== ====== ====== ======
VOLCANO CORPORATION
REVENUE SUMMARY
(in millions)
(Unaudited)
Q4 '08 Q4 '07 Growth % YTD Q4 '08 YTD Q4 '07 Growth %
------ ------ -------- ---------- ---------- --------
IVUS Systems:
United States $6.8 $5.8 17% $22.2 $16.8 32%
Japan 0.8 1.3 -35% 5.7 3.1 86%
Europe 2.9 1.5 92% 8.2 5.1 62%
Rest of World 0.8 0.2 288% 2.7 1.9 43%
--- --- --- --- --- ---
Total IVUS Systems $11.3 $8.8 28% $38.8 $26.9 44%
IVUS Disposables:
United States $14.3 $11.4 26% $52.0 $40.2 29%
Japan 11.3 10.1 12% 36.0 30.3 19%
Europe 4.1 3.8 9% 17.1 12.8 34%
Rest of World 0.7 0.6 17% 2.9 2.2 30%
--- --- --- --- --- ---
Total IVUS
Disposables $30.4 $25.9 18% $108.0 $85.5 26%
FM:
United States $3.1 $1.8 70% $9.4 $6.3 49%
Japan 0.4 0.3 18% 1.3 1.4 -8%
Europe 1.9 1.7 13% 7.0 5.8 21%
Rest of World 0.2 0.3 -33% 1.0 0.8 20%
--- --- --- --- --- ---
Total FM $5.6 $4.1 36% $18.7 $14.3 30%
Other 2.0 1.2 54% 6.0 3.9 56%
--- --- --- --- --- ---
Total $49.3 $40.0 23% $171.5 $130.6 31%
===== ===== === ====== ====== ===
SOURCE Volcano Corporation