VOLCANO CORPORATION PROVIDES ADDITIONAL GUIDANCE FOR 2013
(SAN DIEGO, CA), February 21, 2013-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, is providing additional guidance for 2013 on an as reported basis to augment guidance provided on a constant currency basis in its fourth quarter 2012 earnings news release earlier today.
On an as reported basis, based on foreign currency exchange rates as of February 21, 2013, the company expects revenues will be in the range of $406-$412 million in 2013. Earlier today, the company provided guidance for revenues in 2013 in the range of $422-$428 million on a constant currency basis.
On an as reported basis, Volcano expects gross margins will be in the range of 65.0-65.5 percent and operating expenses will be 62-63 percent of revenues. On a reported basis, the company expects a net loss on a GAAP basis of $0.19-$0.23 per share, including an expected tax benefit of approximately $4.8 million. On a reported basis, the company expects non-GAAP net income of $0.08-$0.11 per diluted share in 2013. Non-GAAP results exclude acquisition-related expenses, amortization of intangibles and non-cash interest expense, and assume an effective tax rate of 38 percent for the GAAP to non-GAAP adjustments. The company expects weighted average basic shares in 2013 will be approximately 54.4 million shares and approximately 56.2 million shares on a diluted basis.
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.volcancocorp.com.
Note Regarding Use of Non-GAAP Financial Measures
The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The company uses non-GAAP financial measures for financial and operational decision making and as a means to compare period-to-period results. The company believes that they provide useful information about operating results, enhance the overall understanding of operating results and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
Constant Currency Basis Revenue Changes: 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 results 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.
Volcano reports its expectations of earnings per share performance excluding certain expenses described below; for additional details please see the “Reconciliation of GAAP to non-GAAP EPS
The following information was filed by Volcano Corp (VOLC) on Friday, February 22, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.