VOLCANO REPORTS SECOND QUARTER RESULTS;
MEDICAL SEGMENT REVENUES INCREASE MORE THAN 13 PERCENT ON A
CONSTANT CURRENCY BASIS
(SAN DIEGO, CA), August 5, 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, today reported results for the second quarter and first six months of 2013.
For the quarter ended June 30, 2013, Volcano reported revenues of $101.3 million, an increase of six percent on a reported basis versus the same period a year ago and 12 percent on a constant currency basis after adjusting for a negative impact of approximately $5.5 million from foreign currency. Medical segment revenues increased more than seven percent and more than 13 percent on a reported and constant currency basis, respectively.
The company reported a net loss on a GAAP basis of $2.4 million, or $0.04 per share, in the second quarter of 2013, versus net income of $3.3 million, or $0.06 per diluted share, in the same period a year ago. The results for the quarter include net interest expense of $6.6 million versus $1.7 million a year ago, reflecting the company's convertible debt offering completed in the fourth quarter of 2012. The company also recorded a gain on a strategic investment of $2.2 million and acquisition-related charges of $911,000 in the second quarter of 2013.
Excluding acquisition related items, amortization of intangibles and non-cash interest expense on convertible notes, net of tax, the company reported non-GAAP earnings per diluted share of $0.03.
For the first six months of 2013, Volcano reported revenues of $194.6 million versus $185.7 million a year ago. This represents an increase of five percent on a reported basis versus the same period a year ago and 10 percent on a constant currency basis after adjusting for a $9.7 million negative effect from foreign currency. Medical segment revenues increased six percent and 11 percent on a reported and constant currency basis, respectively. The company reported a net loss on a GAAP basis of $5.5 million, or $0.10 per share, for the first six months of 2013, versus net income on a GAAP basis of $3.6 million, or $0.06 per diluted share, in the same period a year ago. The results for the first six months of 2013 included net interest expense of $13.2 million versus $3.1 million a year ago. In addition, the company recorded an expense of $2.5 million related to acquisitions and a gain of $4.1 million related to a strategic investment. The company also recorded an exchange rate loss of $1.1 million in the first six months of 2013 versus $101,000 in the same period a year ago.
Excluding acquisition related items, amortization of intangibles and non-cash interest expenses on convertible notes, net of tax, the company reported non-GAAP earnings per diluted share of $0.06.
“Volcano experienced a solid increase in our FFR (Fractional Flow Reserve) disposables business, including 25 and 29 percent on a reported and constant currency basis, respectively, highlighted by growth in Europe and Japan. In addition, our IVUS (Intravascular Imaging) revenues met our expectations, driven by a greater than 25 percent increase in peripheral imaging revenues versus the second quarter a year ago,” said Scott Huennekens, president and chief executive officer.
“We continue to achieve market share gains and are setting the stage for future growth with initiatives such as our iFR® (Instant Wave-Free Ratio) FFR technology. The launch of iFR in Europe is going very well and we just initiated our market launch in Japan. The outcomes to date from the study that will support our U.S. regulatory submissions have been encouraging. We also recently received FDA clearance for our new Verrata™ FFR wire, which will represent our fifth new guide wire in five years, and plan to initiate a full market release for Verrata later this year,” he added.
The company reconfirmed its prior guidance for 2013. Based on current foreign currency exchange rates, it expects revenues on a reported basis of $394.0-$400.0 million, with revenues on a constant currency basis in the range of $418.0-$424.0 million.
The company expects gross margins on a reported basis will be in the range of 64.5-65.0 percent and that operating expenses will be 65.0-66.0 percent of revenues. On a reported basis, the company expects a GAAP net loss of $0.26-$0.28 per share. This assumes an expected tax benefit of approximately $0.20 per share, based on an annual tax rate of 38.5 percent, combined with a $1 million R&D tax credit from 2012 that was recorded in the first quarter of 2013. On a reported basis, the company expects non-GAAP net income of $0.03-$0.05 per diluted share. Non-GAAP results exclude acquisition-related expenses, amortization of intangibles and non-cash interest expense, and assume an effective tax rate of 38.0 percent for the
The following information was filed by Volcano Corp (VOLC) on Monday, August 5, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.