Micrus Endovascular Corporation (Nasdaq:MEND) today reported financial results for the three months ended June 30, 2010.
Micrus reported total revenues of $24.6 million for the first quarter of fiscal 2011, an increase of 16% (also 16% in constant currencies) from $21.2 million reported for the first quarter of fiscal 2010. Higher revenues resulted primarily from an increase in the number of microcoil products sold. Revenues from the Americas increased 13% to $12.6 million (including revenues from the United States of $10.7 million) and revenues from Europe increased by 18% (also 18% in constant currencies) to $7.5 million for the first quarter of fiscal 2011, both compared with the first quarter of fiscal 2010. Revenues from Asia Pacific were $4.5 million, and included sales of $4.1 million to the Company's distributor in Japan, for the first quarter of fiscal 2011. This compares with revenues from Asia Pacific of $3.7 million, which included sales of $3.4 million to the Company's distributor in Japan, for the first quarter of fiscal 2010.
Net income for the first quarter of fiscal 2011 was $3.1 million, or $0.17 per diluted share on 17.6 million weighted-average shares outstanding. Net income for the first quarter of 2011 included $1.3 million or $0.07 per diluted share of non-cash stock-based compensation expense. Net income for the first quarter of fiscal 2010 was $2.3 million, or $0.14 per diluted share on 16.1 million weighted-average shares outstanding, and included $1.9 million or $0.12 per diluted share of non-cash stock-based compensation expense.
Gross margin for the first quarter of fiscal 2011 was 75%, up from 74% for the first quarter of fiscal 2010.
Research and development expenses for the first quarter of fiscal 2011 were $2.3 million, compared with $2.2 million for the comparable prior-year period. The increase was primarily due to an increase in personnel and travel expenses, partially offset by a decrease in material and supplies.
Sales and marketing expenses for the first quarter of fiscal 2011 were $6.4 million, compared with $6.2 million for the first quarter of fiscal 2010. The increase was primarily due to increases in conference and trade show expenses, travel expenses and sales incentives, partially offset by lower stock-based compensation expenses.
General and administrative expenses for the first quarter of fiscal 2011 were $5.9 million, compared with $5.3 million for the comparable prior-year period. The increase was primarily due to an increase in legal expenses and increases in consulting fees and personnel costs, partially offset by lower stock-based compensation expenses.
Operating income was $3.8 million for the three months ended June 30, 2010, compared with operating income of $2.0 million for the prior-year period.
Other expense, net, was $474,000 for the first quarter of fiscal 2011, compared with other income, net of $769,000 for the first quarter of fiscal 2010. The decrease was primarily due to losses resulting from the remeasurement of foreign currency transactions.
As of June 30, 2010, Micrus had cash and cash equivalents of $34.7 million, stockholders' equity of $71.3 million and working capital of $52.9 million.