Highlights for the third quarter and first nine months of fiscal 2010
include the following (all comparisons are with the comparable periods
for fiscal 2009):
-
Total revenues increased 24% for the third quarter (or 20% in constant
currencies) compared with the same period last year
-
Total neurovascular revenues increased 26% (or 22% in constant
currencies) to a record $22.8 million for the third quarter, and
increased 16% (also 16% in constant currencies) to $65.5 million for
the first nine months
-
Neurovascular revenues from the United States increased 15% to $11.0
million for the third quarter, and increased 15% to $32.3 million for
the first nine months
-
Revenues from the Americas increased 16% to $12.6 million for the
third quarter, and increased 10% to $36.1 million for the first nine
months
-
Revenues from Europe increased 31% (or 18% in constant currencies) to
$7.4 million for the third quarter, and increased 16% (or 18% in
constant currencies) to $20.2 million for the first nine months
-
Revenues from Asia Pacific increased 50% to $2.8 million for the third
quarter, and increased 26% to $9.3 million for the first nine months
-
Operating income was $3.4 million for the third quarter, compared with
an operating loss of $1.7 million for the prior-year period; operating
income for the first nine months was $7.4 million, compared with an
operating loss of $10.6 million for the prior-year period
-
Cash and cash equivalents as of December 31, 2009 were $28.6 million,
up $11.6 million from March 31, 2009
Net income for the third quarter of fiscal 2010 was $3.3 million, or
$0.20 per diluted share on 16.8 million weighted-average shares
outstanding, and included $1.5 million or $0.09 per diluted share of
non-cash stock-based compensation expense. The net loss for the third
quarter of fiscal 2009 was $2.3 million, or $0.15 per share on 15.7
million weighted-average shares outstanding, and included $1.2 million
or $0.08 per share of non-cash stock-based compensation expense.
“We are proud to report another quarter of record revenues, up 24% over
the prior year with double-digit revenue growth in all of our major
geographic regions. For the third quarter of fiscal 2010 compared with
the same period in fiscal 2009, our neurovascular sales increased 15% in
the highly competitive U.S. market, 31% in Europe and 50% in Asia
Pacific. Based on this strong performance, we are raising revenue
guidance for fiscal 2010,” said John Kilcoyne, Chairman and CEO of
Micrus Endovascular Corporation. “We continue to grow our top line while
effectively managing expenses, resulting in our fourth consecutive
quarter of profitability and positive cash flow from operations. We
increased our cash position by $11.6 million during the first nine
months of this fiscal year, including a $4.5 million increase in the
fiscal third quarter.
“I am pleased to announce that we have recently launched our DeltaPlush™
finishing microcoils in bare platinum and Cerecyte® versions
in North and South America and Europe, which we expect will
substantially improve our competitive position in the finishing segment
of the coil market. We have also launched our Ascent®
occlusion balloon catheters, a new product category for Micrus which
represents another incremental revenue opportunity,” he added. “Products
we introduced in the past 24 months represented 28% of total 2010 fiscal
third quarter revenues. The largest contribution came from our bare
platinum and Cerecyte® DeltaPaq™ filling microcoils,
comprising 18% of third quarter revenues with sales coming from both
existing and competitive accounts.”
Fiscal Third Quarter Financial Results
For the third quarter of fiscal 2010, total neurovascular revenues were
$22.8 million, up 26% from the comparable prior-year period. Gross
margin for the third quarter of fiscal 2010 was 76%, compared with 74%
for the third quarter of fiscal 2009. The improvement was primarily due
to increased sales of higher-margin products.
Research and development expenses for the third quarter of fiscal 2010
were $2.1 million, down from $2.4 million for the comparable prior-year
period. The decrease was primarily due to lower headcount and a decline
in materials and supplies expenses, partially offset by an increase in
consulting fees and product testing.
Sales and marketing expenses for the third quarter of fiscal 2010 were
$6.4 million, down from $6.9 million for the third quarter of fiscal
2009. The decrease was primarily due to lower travel and personnel
expenses, a decrease in meeting and conference costs and lower
consulting fees, partially offset by an increase in sales incentives
resulting from the higher level of sales.
General and administrative expenses for the third quarter of fiscal 2010
were $5.4 million, down from $5.9 million for the comparable prior-year
period. The decrease is primarily due to lower legal and professional
fees.
Operating income for the third quarter of fiscal 2010 was $3.4 million,
compared with an operating loss of $1.7 million for the third quarter of
fiscal 2009.
Other income, net, was $25,000 for the third quarter of fiscal 2010,
compared with other expense, net, of $1.0 million for the third quarter
of fiscal 2009, due to losses resulting from the remeasurement of
foreign currency transactions in the third quarter of fiscal 2009.
Year-to-Date Financial Results
For the nine months ended December 31, 2009, total neurovascular
revenues were $65.5 million, up 16% from the comparable prior-year
period, reflecting higher sales of microcoil products. Gross margin for
the first nine months of fiscal 2010 was 76%, compared with 74% for the
first nine months of fiscal 2009. Operating expenses for the first nine
months of fiscal 2010 were $42.1 million, down from $53.1 million for
the prior-year period. Operating income for the first nine months of
fiscal 2010 was $7.4 million, compared with an operating loss of $10.6
million for the prior-year period. Other income, net, was $2.6 million
for the nine months ended December 31, 2009, which included the
recognition of a deferred gain of $1.9 million in connection with the
sale of non-neurological assets to Merit Medical Systems, Inc. in
January 2008. Other expense, net, was $1.7 million for the nine months
ended December 31, 2008.
Net income for the nine months ended December 31, 2009 was $9.2 million,
or $0.56 per diluted share on 16.4 million weighted-average shares
outstanding. Net income included $4.8 million or $0.29 per share of
non-cash stock-based compensation expense. This compares with a net loss
of $11.6 million, or $0.74 per share on 15.7 million weighted-average
shares outstanding, for the comparable prior-year period. The net loss
included $4.3 million or $0.27 per share of non-cash stock-based
compensation expense.
As of December 31, 2009, Micrus had cash and cash equivalents of $28.6
million, stockholders’ equity of $59.2 million and working capital of
$41.6 million. As of December 31, 2009, Micrus had outstanding
borrowings of $2.5 million under its line of credit, unchanged from
March 31, 2009.
Use of Non-GAAP Financial Information
A reconciliation of the Company’s non-GAAP financial measures to the
corresponding GAAP measures, and an explanation of the use of non-GAAP
measures, is included at the end of this news release. There are
limitations in using this non-GAAP financial measure because it is not
prepared in accordance with GAAP and may be different from non-GAAP
financial measures used by other companies. These non-GAAP financial
measures should not be considered in isolation or as a substitute for
GAAP financial measures. Investors and potential investors should
consider non-GAAP financial measures only in conjunction with the
Company’s consolidated financial statements prepared in accordance with
GAAP and the reconciliation of the non-GAAP financial measures provided
in the attached schedule.
Fiscal Year 2010 Financial Guidance
Micrus Endovascular raised its expectation for total revenues in fiscal
2010 to be in the range of $87 million to $89 million. This compares
with prior guidance for total revenues to be in the range of $84 million
to $87 million.
SOURCE Micrus Endovascular Corporation