VOLCANO REPORTS FOURTH QUARTER REVENUES INCREASE SIX PERCENT ON A CONSTANT CURRENCY BASIS
(SAN DIEGO, CA), February 24, 2014 - 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 fourth quarter and all of 2013.
For the quarter ended December 31, 2013, Volcano reported revenues of $103.3 million versus revenues of $102.5 million in the same period a year ago. On a constant currency basis, revenues increased six percent year-over-year after adjusting for a negative impact of approximately $5.5 million from foreign currency. Medical segment revenues increased approximately one percent and six percent on a reported and constant currency basis, respectively.
The company reported a net loss on a GAAP basis of $20.5 million, or $0.38 per share, in the fourth quarter of 2013, versus net income of $2.5 million, or $0.04 per diluted share, in the same period a year ago. The results for the fourth quarter of 2013 include restructuring charges of $14.5 million related to a strategic reprioritization initiative that began in the third quarter of 2013. Excluding acquisition-related items, amortization of intangibles and non-cash interest expense on convertible notes, net of tax, the company reported a non-GAAP loss of $0.29 per share.
For all of 2013, Volcano reported revenues of $393.7 million versus $381.9 million a year ago. This represents an increase of three percent on a reported basis and eight percent on a constant currency basis after adjusting for a $20.6 million negative effect from foreign currency. Medical segment revenues increased four and nine percent on a reported and constant currency basis, respectively.
The company reported a net loss on a GAAP basis of $34.5 million, or $0.63 per share, in 2013 versus net income on a GAAP basis of $8.0 million, or $0.15 per diluted share, in 2012. The results for 2013 include restructuring charges of $19.4 million, a year-over-year increase of approximately $3.0 million in acquisition-related charges and a year-over-year increase in net interest expense of $18.5 million reflecting the company’s convertible debt offering in the fourth quarter of 2012. Excluding acquisition-related items, amortization of intangibles and non-cash interest expense on convertible notes, net of tax, the company reported a non-GAAP net loss of $0.31 per share.
“Volcano had a very solid quarter throughout all of its businesses and across all of our key geographies, with particular strength in our U.S. IVUS (Intravascular Ultrasound) disposable revenues as we increased our penetration of the peripheral market and recorded contributions from the Pioneer Plus Re-Entry Catheter that we acquired in the third quarter of 2013,” said Scott Huennekens, president and chief executive officer.
“We continued to experience share gains in Europe, where we realized a greater than 20 percent increase in our combined IVUS and FFR (Functional Flow Reserve) disposable revenues year-over-year. Also during the quarter, we initiated the roll-out of several new products, including the Pioneer Plus, our new Verrata FFR wire and the Crux IVC (inferior vena cava) filter, and continued our limited market release of our iFR (Instant Wave-Free Ratio) FFR technology in Europe and Japan. We believe these products will provide even more significant revenue contributions during 2014,” he added.
The company provided guidance for 2014. Based on current foreign currency exchange rates, it expects revenues on a reported basis will be $413.0-$421.0 million, with revenues on a constant currency basis in the range of $417.0-$425.0 million.
The company said it expects gross margins on a reported basis will be in the range of 64.0-64.5 percent and that operating expenses, including restructuring charges, will be 68.0-69.0 percent of revenues. On a reported basis, the company expects a GAAP net loss of $0.57-$0.60 per share. On a non-GAAP basis, the company expects a net loss per share of $0.16-$0.19. Non-GAAP results exclude acquisition-related expenses, amortization of intangibles and non-cash interest expense, and assume an effective tax rate of 35.0 percent for the GAAP to non-GAAP adjustments. The company expects weighted average basic shares in 2014 will be approximately 51.2 million shares.
For the first quarter of 2014, Volcano expects revenues in the range of $94.0-$95.0 million on a reported basis, and $98.0-$99.0 million on a constant currency basis. The company expects a loss per share of $0.20-$0.21 on a GAAP basis and $0.11-$0.12 on a non-GAAP basis.
The following information was filed by Volcano Corp (VOLC) on Monday, February 24, 2014 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.