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Abiomed Announces Record Revenue of $67.6 Million, Up 34% and U.S. Patient Growth Up 42% in Fiscal Fourth Quarter 2015

DANVERS, Mass., May 5, 2015 (GLOBE NEWSWIRE) -- Abiomed, Inc. (Nasdaq:ABMD), a leading provider of breakthrough heart support technologies, today reported fiscal fourth quarter 2015 revenue of $67.6 million, up 34% compared to revenue of $50.4 million in the same period of fiscal 2014, and a fiscal fourth quarter 2015 GAAP net income of $98.9 million, or $2.24 per diluted share, compared to $3.6 million, or $0.09 per diluted share, in the prior year period.

Fiscal fourth quarter GAAP income from operations totaled $12.4 million, up 235% compared to $3.7 million in the prior year. GAAP net income included an income tax benefit of $86.5 million largely due to the release of the valuation allowance on most of Abiomed's deferred tax assets. The release of the valuation allowance is a onetime accounting adjustment with the offset recorded on the balance sheet as short and long term deferred tax assets based on the Company's estimates of sustainable profitability.

For fiscal year 2015, total revenue was $230.3 million, up 25% compared to revenue of $183.6 million in fiscal year 2014. GAAP net income was $113.7 million or $2.65 per diluted share compared with $7.4 million or $0.18 per diluted share in fiscal year 2014.

Financial and operating highlights during the fourth quarter and for the full fiscal year include:

  • Fiscal fourth quarter worldwide Impella® revenue totaled $63.4 million, an increase of 38% compared to revenue of $46.1 million during the same period of the prior year. Full year worldwide Impella revenue totaled $212.7 million, up 27% compared to $167.0 million for fiscal year 2014.
  • Fiscal fourth quarter U.S. Impella revenue grew 38% to $57.7 million from $41.8 million in the prior year. Full year U.S. Impella revenue totaled $191.5 million, up 26% compared to $152.0 million in the prior year.
  • An additional 27 hospitals made initial purchases of Impella during the quarter, compared to 23 new hospital sites in the prior year period, bringing the installed customer base to 958 sites. As part of Abiomed's continued Impella CP® launch, 57 hospitals purchased Impella CP, bringing the total number of Impella CP U.S. sites to 640, 67% of total Impella sites.
  • Outside the U.S., fiscal fourth quarter Impella revenue was $5.7 million, an increase of 30% over the prior year.
  • Gross margin for fiscal fourth quarter 2015 was 84.0% compared to 79.9% in the fourth quarter of fiscal 2014. For the full fiscal year, gross margin was 82.7% compared to 79.7% in the prior year. There were 529 Impella AIC consoles placed during fiscal year 2015 compared to 675 in fiscal year 2014.
  • Fiscal fourth quarter income from operations was $12.4 million, or operating margin of 18.3% compared to $3.7 million, or operating margin of 7.3% in the prior year period. For the full fiscal year, income from operations was $28.7 million or operating margin of 12.4% compared to $8.4 million or operating margin of 4.6% in the prior year.
  • Cash, cash equivalents, short and long-term marketable securities totaled $146.0 million as of March 31, 2015. The Company has no debt.
  • On March 23, Abiomed and the FDA announced that the Impella 2.5 had received FDA approval for elective and urgent high risk percutaneous coronary intervention (PCI) procedures, making it the only FDA-approved percutaneous hemodynamic support device determined to be safe and effective for the high risk PCI indication.

"This quarter and fiscal year, Abiomed executed and achieved high growth, regulatory approvals, sustainable profitability and is positioned to address a substantial clinical need as Impella becomes the standard of care," said Michael R. Minogue, Chairman, President and Chief Executive Officer, Abiomed.

FISCAL YEAR 2016 OUTLOOK

The Company is increasing its fiscal year 2016 guidance for total revenue to be in the range of $285 million to $295 million, an increase of 24% to 28% from the prior year. This new range compares to the previous estimated range of $260 million to $270 million. The Company is also giving its fiscal year guidance for GAAP operating margin to be in the range of 12% to 16%.

CONFERENCE CALL

The Company will host a conference call to discuss the results on Tuesday, May 5, 2015, at 8:00 a.m. EDT. Michael R. Minogue, Chairman, President and Chief Executive Officer; 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 (855) 212-2361; the international number is (678) 809-1538. A replay of this conference call will be available beginning at 11 a.m. EDT May 5, 2015 through 11:59 p.m. EDT on May 7, 2015. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 5151339.

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 financial guidance for fiscal year 2016. These forward-looking statements may be accompanied by such words as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "project," "target," "will," and other words and terms of similar meaning. These forward-looking statements include all matters that are not historical facts. 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, commercialization and related regulatory approvals, including the potential for future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, dependence on Impella products for a significant portion of the Company's revenue, 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 update or revise 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, whether as a result of new information, future events or otherwise, unless otherwise required by law.

Abiomed, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)
March 31,
2015
March 31,
2014
ASSETS
Current assets:
Cash and cash equivalents $ 22,401 $ 20,916
Short-term marketable securities 109,557 55,663
Accounts receivable, net 31,828 24,357
Inventories 16,774 13,948
Prepaid expenses and other current assets 4,479 3,082
Deferred tax assets, net 35,100 --
Total current assets 220,139 117,966
Long-term marketable securities 13,996 41,761
Property and equipment, net 9,127 6,889
Goodwill 31,534 37,990
In-process research and development 14,711 --
Long-term deferred tax assets, net 45,206 --
Other assets 3,654 801
Total assets $ 338,367 $ 205,407
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,389 $ 7,746
Accrued expenses 21,894 17,899
Deferred revenue 7,036 4,766
Total current liabilities 39,319 30,411
Other long-term liabilities 183 228
Contingent consideration 6,510 --
Long-term deferred tax liabilities 795 6,415
Total liabilities 46,807 37,054
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 413 411
Authorized - 100,000,000 shares; Issued - 42,618,717 shares at March 31, 2015 and 41,122,695 shares at March 31, 2014;
Outstanding - 41,335,773 shares at March 31, 2015 and 39,916,328 shares at March 31, 2014
Additional paid in capital 465,046 436,136
Accumulated deficit (137,222) (250,910)
Treasury stock at cost - 1,282,944 shares at March 31, 2015 and 1,206,367 shares at March 31, 2014 (19,347) (16,554)
Accumulated other comprehensive loss (17,330) (730)
Total stockholders' equity 291,560 168,353
Total liabilities and stockholders' equity $ 338,367 $ 205,407
Abiomed, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share data)
Three Months Ended
March 31,
Year Ended
March 31,
2015 2014 2015 2014
Revenue:
Product revenue $ 67,550 $ 50,242 $ 229,950 $ 183,280
Funded research and development 7 191 361 363
67,557 50,433 230,311 183,643
Costs and expenses:
Cost of product revenue 10,806 10,114 39,945 37,322
Research and development 9,853 7,920 35,973 30,707
Selling, general and administrative 34,535 28,721 125,727 107,251
55,194 46,755 201,645 175,280
Income from operations 12,363 3,678 28,666 8,363
Other income (expense):
Investment income (expense), net 68 40 196 118
Other (expense) income, net (59) 44 (97) 49
9 84 99 167
Income before provision for income taxes 12,372 3,762 28,765 8,530
Income tax (benefit) provision (86,502) 140 (84,923) 1,179
Net income $ 98,874 $ 3,622 $ 113,688 $ 7,351
Basic net income per share $ 2.40 $ 0.09 $ 2.80 $ 0.19
Basic weighted average shares outstanding 41,168 39,810 40,632 39,334
Diluted net income per share $ 2.24 $ 0.09 $ 2.65 $ 0.18
Diluted weighted average shares outstanding 44,049 42,125 42,858 41,606

CONTACT: For further information please contact: Ingrid Goldberg, Director, Investor Relations 978-646-1590 ir@abiomed.com Aimee Genzler Director, Corporate Communications 978-646-1553 agenzler@abiomed.com

Source: Abiomed