Abiomed Announces Third Quarter Fiscal 2014 Record Revenue of $46.2 Million, Up 21% Over the Prior Year

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  • Abiomed Receives Approval in China for Impella 2.5, Impella 5.0 and MPC

DANVERS, Mass., Jan. 30, 2014 (GLOBE NEWSWIRE) -- Abiomed, Inc. (Nasdaq:ABMD), a leading provider of breakthrough heart support technologies, today reported third quarter fiscal 2014 revenue of $46.2 million, up 21% compared to revenue of $38.3 million in the same period of fiscal 2013, and a third quarter fiscal 2014 GAAP net income of $4.4 million, or $0.11 per diluted share, compared to $2.7 million, or $0.07 per diluted share, in the prior year period.

Financial and operating highlights during the third quarter of fiscal 2014 and fiscal year to date include:

  • Fiscal third quarter worldwide Impella® revenue totaled $42.0 million, an increase of 25% compared to revenue of $33.5 million during the same period of the prior year. U.S. Impella revenue grew 21% to $37.7 million from $31.1 million in the prior year.
  • An additional 31 hospitals purchased Impella 2.5 during the quarter, bringing the total to 836 customer sites. As part of Abiomed's continued Impella CP® launch, an additional 75 hospitals purchased Impella CP, bringing the total number of Impella CP U.S. sites to 312.
  • Gross margin for the third quarter of fiscal 2014 was 79.5% compared to 78.7% in the third quarter of fiscal 2013. There were 178 Impella AIC consoles placed during the quarter compared to 149 in the same period of the prior year.
  • Income from operations for the third quarter fiscal 2014 was $4.6 million, or 10.0% of revenue compared to $2.9 million, or 7.6% of revenue in the prior year period. Operating expense in the third quarter of fiscal 2014 included $1.6 million of stock compensation expense and $0.7 million related to the Department of Justice subpoena and shareholder litigation. In the third quarter of the prior year, stock compensation expense totaled $1.9 million, and Department of Justice subpoena and shareholder litigation related expense totaled $0.8 million.
  • Cash, cash equivalents, short and long-term marketable securities totaled $107.4 million as of December 31, 2013. The Company continues to have no debt, and a U.S. federal net operating loss carry-forward of approximately $190 million as of March 31, 2013.
  • During the quarter, there were 11 clinical publications on Impella, including new results from the USpella registry published in the Journal of Interventional Cardiology, additional insights from the PROTECT II study as well as new cost-effectiveness data, both published in Catheter Cardiovascular Interventions.
  • Abiomed announced today that it has received CFDA approval in China to sell and market the Impella 2.5, Impella 5.0 and the original MPC console. Abiomed will conduct a limited launch at five to ten key hospitals in China during calendar year 2015.

"We have now grown top line revenue double digits for 17 straight quarters, year over year, achieved profitability and accumulated $107 million in cash without incurring debt," said Michael R. Minogue, Chairman, President and Chief Executive Officer, Abiomed. "Abiomed is capitalizing on the opportunity to increase revenue, complete the regulatory requirements and become the new standard of care."

FISCAL YEAR 2014 OUTLOOK

The Company is maintaining its fiscal year 2014 guidance for total revenues to be in the range of $180 million to $185 million with worldwide Impella revenues increasing approximately 20%. The Company is also maintaining its fiscal year 2014 guidance for GAAP operating margin to be in the range of approximately breakeven to 5%.

CONFERENCE CALL

The Company will host a conference call to discuss the results on Thursday, January 30, 2014, at 8:00 a.m. ET. Michael R. Minogue, Chairman, President and Chief Executive Officer and Robert L. Bowen, Vice President and Chief Financial Officer, will host the conference call.

To listen to the call live, please tune into the webcast via http://investor.abiomed.com or dial (877) 638-9567; the international number is (253) 237-1032. A replay of this conference call will be available beginning at 11 a.m. ET January 30, 2014 through 11:59 p.m. ET on February 6, 2014. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 29977730.

ABOUT ABIOMED

Based in Danvers, Massachusetts, Abiomed, Inc. is a leading provider of medical devices that provide circulatory support. Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information, please visit: www.abiomed.com

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements, including statements regarding development of Abiomed's existing and new products, the Company's progress toward commercial growth, and future opportunities and expected regulatory approvals. The Company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including uncertainties associated with development, testing and related regulatory approvals, including the potential for future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, competition, technological change, government regulation, litigation matters, future capital needs and uncertainty of additional financing, and other risks and challenges detailed in the Company's filings with the Securities and Exchange Commission, including the most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this release or to reflect the occurrence of unanticipated events.

Abiomed, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)
December 31, 2013 March 31, 2013
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 22,631 $ 9,451
Short-term marketable securities 56,944 67,256
Accounts receivable, net 22,958 22,946
Inventories 14,819 14,930
Prepaid expenses and other current assets 2,377 2,022
Total current assets 119,729 116,605
Long-term marketable securities 27,784 11,406
Property and equipment, net 7,022 6,549
Goodwill 38,029 35,410
Other assets 801 29
Total assets $ 193,365 $ 169,999
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,066 $ 7,696
Accrued expenses 16,015 15,162
Deferred revenue 4,354 4,198
Total current liabilities 26,435 27,056
Long-term deferred tax liability 6,234 5,554
Other long-term liabilities 239 309
Total liabilities 32,908 32,919
Commitments and contingencies
Stockholders' equity:
Class B Preferred Stock, $.01 par value -- --
Authorized - 1,000,000 shares; Issued and outstanding - none
Common stock, $.01 par value 409 397
Authorized - 100,000,000 shares; Issued - 40,972,146 shares at December 31, 2013 and 39,788,383 shares at March 31, 2013;
Outstanding - 39,765,779 shares at December 31, 2013 and 38,601,384 shares at March 31, 2013
Additional paid in capital 431,754 414,810
Accumulated deficit (254,532) (258,261)
Treasury stock at cost - 1,206,367 shares at December 31, 2013 and 1,186,999 shares at March 31, 2013 (16,554) (16,129)
Accumulated other comprehensive loss (620) (3,737)
Total stockholders' equity 160,457 137,080
Total liabilities and stockholders' equity $ 193,365 $ 169,999
Abiomed, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share data)
Three Months Ended
December 31,
Nine Months Ended
December 31,
2013 2012 2013 2012
Revenue:
Product revenue $ 46,141 $ 38,112 $ 133,038 $ 114,078
Funded research and development 54 138 172 372
46,195 38,250 133,210 114,450
Costs and expenses:
Cost of product revenue 9,458 8,130 27,208 22,770
Research and development 7,779 6,259 22,787 18,825
Selling, general and administrative 24,364 20,943 78,530 60,333
Amortization of intangible assets -- -- -- 111
41,601 35,332 128,525 102,039
Income from operations 4,594 2,918 4,685 12,411
Other income:
Investment income, net 37 1 78 --
Other income, net 20 324 5 311
57 325 83 311
Income before income tax provision 4,651 3,243 4,768 12,722
Income tax provision 258 559 1,039 1,450
Net income $ 4,393 $ 2,684 $ 3,729 $ 11,272
Basic net income per share $ 0.11 $ 0.07 $ 0.10 $ 0.29
Basic weighted average shares outstanding 39,592 39,417 39,179 39,331
Diluted net income per share $ 0.11 $ 0.07 $ 0.09 $ 0.27
Diluted weighted average shares outstanding 41,726 40,865 41,315 41,418

CONTACT: Aimee Genzler Corporate Communications Manager 978-646-1553 ir@abiomed.com

Source:Abiomed