SAN DIEGO, May 2, 2012 /PRNewswire/ -- 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 said revenues in the first quarter of 2012 increased 12 percent over the same period a year ago.
For the quarter ended March 31, 2012, Volcano reported revenues of $90.4 million versus revenues of $81.0 million in the first quarter a year ago. Year-over-year medical segment revenues increased 15 percent in the first quarter of 2012. Industrial segment revenues in the first quarter declined 48 percent versus a year ago, due to the continued lack of network capacity spending by telecom service providers.
The company reported GAAP net income of $271,000, or $0.00 per diluted share, in the first quarter of 2012, versus net income of $1.2 million, or $0.02 per diluted share in the first quarter of 2011.
"Volcano began 2012 with a solid performance as we continued to increase our market presence as the leading precision guided therapy company. Our growth strategy is being facilitated by the increasing focus on medical necessity, quality and documentation for procedures. By providing precision guided therapy, our Functional PCI technologies address both clinical and economic needs faced by physicians and hospitals," said Scott Huennekens, president and chief executive officer.
"Our activity in the U.S. and Japan met or exceeded our expectations, helping us generate an 18 percent increase in medical disposable revenues, including a 37 percent increase in FFR (Fractional Flow Reserve) disposable sales and a 12 percent increase in sales of IVUS (Intravascular Imaging) disposables. We experienced a nominal decline in Europe due to a slowing economy and our decision to transition to direct in Spain earlier than previously planned. As we have accomplished in Japan and other countries, by going direct we expect to see an acceleration of Volcano growth and market penetration in new direct markets over time," he added.
Guidance for 2012
The company reconfirmed prior guidance for 2012. The company continues to expect that revenues will be in the range of $392-$399 million. The company reconfirmed guidance for gross margins of 64-65 percent and operating expenses of 57-58 percent of revenues in 2012.
The company also reconfirmed that it expects a tax rate of approximately 40 percent and earnings per diluted share of $0.21-$0.24. Weighted average shares on a fully diluted basis at the end of 2012 are expected to be 55.5 million.
Conference Call Information
The company will hold a conference call at 2 p.m., Pacific Daylight Time, (5 p.m., Eastern Daylight Time), today. The teleconference can be accessed by calling (631) 291-4555, passcode 70731296, 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 May 9 at (404) 537-3406, passcode 70731296, 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.
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, margin or tax rate projections may turn out to be inaccurate or Volcano may encounter unanticipated difficulty in achieving those projections, the effect of competitive and economic 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, the inherent 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, including currency exchange rate fluctuations, timing and achievement of product development milestones, outcome of ongoing litigation, the impact and benefits of market development, our ability to protect our intellectual property, dependence upon third parties, product introductions, 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 annual report on Form 10-K 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.
VOLCANO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) March 31, December 31, 2012 2011 ---- ---- Assets Current assets: Cash and cash equivalents $63,444 $107,016 Short-term available- for-sale investments 133,181 112,327 Accounts receivable, net 66,365 69,469 Inventories 39,258 41,306 Prepaid expenses and other current assets 20,342 19,939 Total current assets 322,590 350,057 Restricted cash 712 692 Long-term available- for-sale investments 53,022 30,919 Property and equipment, net 90,939 81,097 Intangible assets, net 15,069 15,245 Goodwill 2,487 2,487 Other non- current assets 17,170 16,227 $501,989 $496,724 ======== ======== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $12,596 $12,911 Accrued compensation 17,187 20,251 Accrued expenses and other current liabilities 17,222 16,689 Deferred revenues 7,278 7,077 Current maturities of long- term debt 76 72 Total current liabilities 54,359 57,000 Convertible senior notes 96,833 95,663 Other long- term debt 47 74 Deferred revenues 3,127 3,168 Other 1,806 1,582 Total liabilities 156,172 157,487 Stockholders' equity 345,817 339,237 ------- ------- $501,989 $496,724 ======== ========
VOLCANO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) Three Months Ended March 31, --------- 2012 2011 ---- ---- Revenues $90,360 $80,995 Cost of revenues 29,573 27,874 ------ ------ Gross profit 60,787 53,121 Operating expenses: Selling, general and administrative 44,345 35,460 Research and development 13,649 13,088 Amortization of intangibles 872 855 Total operating expenses 58,866 49,403 ------ ------ Operating income 1,921 3,718 Interest income 230 243 Interest expense (1,472) (2,005) Exchange rate loss (175) (388) Other, net (96) - --- --- Income before income tax 408 1,568 Income tax expense 137 412 --- --- Net income $271 $1,156 ==== ====== Net income per share: Basic $0.01 $0.02 ===== ===== Diluted $ - $0.02 === === ===== Shares used in calculating net income per share: Basic 52,929 51,766 ====== ====== Diluted 54,985 54,215
VOLCANO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (in thousands) (Unaudited) Three Months Ended March 31, --------- 2012 2011 ---- ---- Operating activities Net income $271 $1,156 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,791 5,560 Amortization of investment premium, net 269 736 Accretion of debt discount on convertible senior notes 1,212 1,138 Non- cash stock compensation expense 3,617 3,094 Other non- cash adjustments 306 873 Changes in operating assets and liabilities (961) (12,359) ---- ------- Net cash provided by operating activities 10,505 198 ------ --- Investing activities Purchase of short- term and long- term available- for- sale securities (110,762) (83,908) Sale or maturity securities of short- term and long- term available- for- sale 67,577 98,790 Capital expenditures (14,437) (6,747) Cash paid for other intangibles and investments (758) (313) Proceeds from foreign currency exchange contracts - 374 Payment for foreign currency exchange contracts - (817) --- ---- Net cash (used in) provided by investing activities (58,380) 7,379 ------- ----- Financing activities Repayment of debt (22) (10) Proceeds from and sale of common stock under employee stock purchase plan 4,887 4,694 exercise of common stock options Net cash provided by financing activities 4,865 4,684 Effect of exchange rate changes on cash and cash equivalents (562) (2,686) ---- ------ Net (decrease) increase in cash and cash equivalents (43,572) 9,575 Cash and cash equivalents, beginning of period 107,016 43,429 ------- ------ Cash and cash equivalents, end of period $63,444 $53,004 ======= =======
VOLCANO CORPORATION REVENUE SUMMARY (in millions) (unaudited) Three Months Percentage Ended Change March 31, --------- 2012 2011 2011 to 2012 ---- ---- ------------ Medical segment: Consoles: United States $5.2 $5.9 (12)% Japan 0.9 0.6 42 Europe 1.1 2.4 (55) Rest of world 0.9 1.0 (7) Total Consoles $8.1 $9.9 (18) IVUS single- procedure disposables: United States $19.7 $18.2 8% Japan 26.6 22.2 20 Europe 5.4 5.5 (2) Rest of world 1.8 1.7 8 Total IVUS single- procedure disposables $53.5 $47.6 12 FM single- procedure disposables: United States $11.7 $8.1 45% Japan 1.8 0.9 92 Europe 6.2 5.1 21 Rest of world 0.5 0.6 (21) Total FM single- procedure disposables $20.2 $14.7 37 Other $6.6 4.9 36% Sub-total medical segment $88.4 $77.1 15 Industrial segment $2.0 3.9 (48) Total $90.4 $81.0 12 ===== =====
SOURCE Volcano Corporation