Abiomed second quarter revenue increases 17% to $23.4 million

Abiomed, Inc. (NASDAQ: ABMD), a leading provider of breakthrough heart support technologies, today reported second quarter fiscal 2011 revenue of $23.4 million, up 17% compared to the same period of fiscal 2010. Revenues for the first half of fiscal 2011 were $45.4 million, up 14% from $39.9 million in the first half of fiscal 2010.

“Despite the industry summer slowdown, the second quarter of fiscal 2011 demonstrated that our momentum is growing both year over year and sequentially on revenue, patients, and clinical evidence. In summary, the company executed and had the best quarter in our 29 year history.”

Total commercial U.S. Impella® revenue, including initial site stocking orders and reorders, totaled $16.1 million, a 33% increase compared to $12.1 million in the second quarter of fiscal 2010. Commercial U.S. Impella reorders of $13.7 million were up 108% from $6.6 million in the second quarter of fiscal 2010 and represented 85% of commercial U.S. Impella revenue.

Worldwide Impella revenue totaled $17.6 million, up 33% compared to revenue of $13.2 million during the same period of the prior year.

Financial and operating highlights during the second quarter of fiscal 2011 include:

• A reported 597 U.S. commercial patients were treated with Impella 2.5, 5.0 or LD, a 77% increase compared to a reported 338 commercial patients in the second quarter of fiscal 2010. As of September 30, 2010, a reported 3,362 U.S. patients have been treated with Impella since the Impella 2.5 510(k) clearance in June 2008.
• An additional 27 U.S. hospitals purchased Impella 2.5 for commercial use during the quarter, bringing the total to 464 commercial customers, as compared to 50 hospitals added in the second quarter of fiscal 2010, aligning with the Company's strategy to open fewer sites and drive deeper utilization at existing customer sites.
• Gross margin rate for the second quarter of fiscal 2011 was 77%, compared to 73% in the second quarter of fiscal 2010.
• 39 patients were enrolled in the Protect II study, for a total of 429 patients completed, or 66% of the 654 patients required.
• Non-Impella revenue was $5.8 million for the second quarter of fiscal 2011, 15% lower than $6.8 million in the second quarter of fiscal 2010 and up 7% from $5.4 million in the first quarter of fiscal 2011.
• GAAP net loss for the second quarter of fiscal 2011 was $3.2 million, or $0.09 per share, compared to a GAAP net loss of $7.7 million, or $0.21 per share for the second quarter of fiscal 2010. GAAP net loss for the first half of fiscal 2011 was $9.2 million, or $0.25 per share, compared to a GAAP net loss of $15.4 million, or $0.42 per share for the first half of fiscal 2010.
• Non-GAAP net loss, which is described later in this press release for the second quarter of fiscal 2011 was $1.7 million, or $0.05 per share versus non-GAAP net loss of $5.3 million or $0.14 per share, in the second quarter of fiscal 2010. Non-GAAP net loss for the first half of fiscal 2011 was $5.4 million, or $0.14 per share versus non-GAAP net loss of $11.0 million or $0.30 per share, in the first half of fiscal 2010.
• Cash, cash equivalents and short-term marketable securities totaled $54.1 million at September 30, 2010 compared to $54.9 million at June 30, 2010.
• At TCT 2010 in September, Abiomed announced the latest results from USpella, a U.S. multicenter, observational registry of 352 Impella 2.5 patients. Impella was also used in three live cases broadcasted during the conference.
• On September 30, 2010, Abiomed announced the launch of a specialized partner program that enables select top healthcare institutions to provide advanced training in hemodynamic support and complex patient management to better facilitate heart muscle recovery. PinnacleHealth is the first healthcare institution to join the program.

"The second quarter of fiscal 2011 was outstanding. It was highlighted by the release of the USpella results at TCT in September, record revenues and number of patients supported and positive operational performance," said Michael R. Minogue, Chairman, President and Chief Executive Officer of Abiomed. "Despite the industry summer slowdown, the second quarter of fiscal 2011 demonstrated that our momentum is growing both year over year and sequentially on revenue, patients, and clinical evidence. In summary, the company executed and had the best quarter in our 29 year history."

Based on second quarter fiscal 2011 results and a positive Impella outlook, the Company is raising full year worldwide revenue guidance to the range of $93 million to $97 million.