VOLCANO CORPORATION REPORTS RECORD QUARTERLY REVENUES; TOTAL YEAR REVENUES REACH $103
(RANCHO CORDOVA, CA), February 13, 2007Volcano Corporation (NASDAQ: VOLC), a leading
provider of intravascular ultrasound (IVUS) and functional measurement (FM) products designed to
enhance the diagnosis and treatment of vascular and structural heart diseases, today announced
results for the fourth quarter and all of fiscal 2006.
For the quarter ended December 31, 2006, Volcano reported record quarterly revenues of $29.5
million, a 20 percent increase over revenues of $24.7 million in the fourth quarter a year ago, and
a six percent increase over revenues of $27.8 million in the
third quarter of 2006. IVUS disposable revenues in the fourth quarter
of 2006 increased 25 percent over the fourth quarter of 2005.
Volcano reported its second consecutive quarter of profitability on a GAAP basis, with net
income of $1.4 million, or $0.04 per diluted share, versus a net loss of $6.9 million, or $1.01 per
share, in the same quarter a year ago. The company recorded stock-based compensation expense of
$901,000 compared with $494,000 in the fourth quarter of 2005. Excluding stock-based compensation
expense, Volcano reported net income of $2.3 million, or $0.06 per diluted share, versus a net loss
of $6.4 million, or $0.94 per share, in the fourth quarter of 2005. Weighted average diluted shares
outstanding were 38.2 million in the fourth quarter of 2006 versus 6.8 million in the same period a
year ago. The increase reflects the conversion of preferred stock to common stock, the exercise of
warrants, the companys initial public offering in June 2006 and the completion of a follow on
offering in December 2006.
For all of fiscal 2006, Volcano reported revenues of $103.0 million, a 12 percent increase
over revenues of $91.9 million in fiscal 2005. For the year,
IVUS disposable revenues increased 23 percent over 2005. Volcano reported a net loss on a GAAP basis of $8.6
million, or $0.41 per share, compared to a net loss of $15.3 million, or $2.28 per share, in 2005.
Excluding a non-recurring, non-cash charge of $1.2 million related to the early extinguishment of
debt and stock-based compensation expense of $3.2 million, the company reported a net loss of $4.2
million, or $0.20 per share, compared with a net loss of $13.3 million, or $1.99 per share, in
2005. A reconciliation of the companys GAAP to non-GAAP results can be found in todays earnings
press release on the companys website at www.volcanocorp.com
During the fourth quarter of 2006 Volcano completed an equity offering, selling approximately
4.3 million primary shares including the underwriters overallotment that generated net
proceeds to the company of approximately $67.8 million.
Our results for the quarter demonstrate the ability of our s5 family of consoles to both gain
market share and increase the utilization of IVUS in the diagnosis and treatment of vascular
disease, said Scott Huennekens, president and chief executive officer of Volcano. Our consoles
facilitate the integration of IVUS in the cath lab, and provide ease of use and enhanced
functionality for clinicians. With the launch of our Revolution rotational high frequency catheter,
we are now the only company offering the market both phased array and rotational catheters. In
addition, the enhancements we have