Spectranetics Corporation Achieves Third Quarter 2014 Revenue Of $58.8 Million

COLORADO SPRINGS, Colo., Oct. 23, 2014 (GLOBE NEWSWIRE) -- The Spectranetics Corporation (Nasdaq:SPNC) today reported financial results for the three and nine months ended September 30, 2014. Highlights of the quarter, all compared with the three months ended September 30, 2013 include:

• Revenue of $58.8 million, up 48%
• Vascular Intervention revenue of $36.6 million grew 93%
  • U.S. peripheral atherectomy revenue grew 19%
  • AngioSculpt^™ revenue of $14.9 million achieved in the first quarter following the AngioScore acquisition
• Lead Management revenue of $17.6 million increased 9%
• U.S. revenue grew 49% to $48.5 million; International revenue grew 43% (41% constant currency¹) to $10.3 million
• FDA clearance of in-stent restenosis (ISR) indication achieved
• EXCITE ISR data unveiled at Transcatheter Cardiovascular Therapeutics (TCT) late breaking clinical trial session, demonstrating superiority of laser atherectomy with balloon angioplasty vs. balloon angioplasty alone for the treatment of in-stent restenosis

"In the midst of growing faster than the market across key vascular segments, we achieved and launched the ISR indication. We capitalized on our late-breaking trial status at TCT and early signs of traction are evident. The AngioScore integration is solidly on track and our new product launches are exceeding expectations. Our Lead Management revenue accelerated from first half levels, well on our way to double-digit growth in the fourth quarter," said Spectranetics President and Chief Executive Officer, Scott Drake.

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¹Constant currency, non-GAAP net loss, and Adjusted EBITDA are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" later in this release.

Net loss for the three months ended September 30, 2014 was $13.9 million, or $0.33 per share, compared with net income of $434,000, or $0.01 per share, for the three months ended September 30, 2013. Non-GAAP net loss¹, which excludes acquisition-related items, for the three months ended September 30, 2014 was $1.9 million, or $0.05 per share, compared with non-GAAP net income of $914,000, or $0.02 per share, for the three months ended September 30, 2013. Adjusted EBITDA¹ was $2.7 million for the three months ended September 30, 2014 compared with $3.8 million for the three months ended September 30, 2013.

Year-To-Date Financial Results

Revenue for the nine months ended September 30, 2014 rose 21% to $142.0 million, including $14.9 million of AngioSculpt revenue, from $116.9 million for the nine months ended September 30, 2013. Vascular Intervention revenue increased 44% (43% constant currency) to $79.1 million, Lead Management revenue increased 4% (3% constant currency) to $48.2 million, and laser system, service and other revenue decreased 6% to $14.7 million.

On a geographic basis, revenue in the United States was $115.1 million, an increase of 20% from the nine months ended September 30, 2013. International revenue totaled $26.9 million, an increase of 26% (23% constant currency) from the nine months ended September 30, 2013.

Net loss during the nine months ended September 30, 2014 was $26.2 million, or $0.63 per share, compared with net loss of $1.3 million, or $0.03 per share, for the nine months ended September 30, 2013. Non-GAAP net loss during the nine months ended September 30, 2014 was $9.6 million, or $0.23 per share, compared with non-GAAP net income of $41,000, or $0.00 per share, for the nine months ended September 30, 2013. Adjusted EBITDA was $909,000 for the nine months ended September 30, 2014 compared with $7.2 million for the nine months ended September 30, 2013.

2014 Outlook

Spectranetics management projects revenue for 2014 to be in the range of $202.0 - $203.5 million, an increase of 27% to 28% over 2013, compared with management's prior 2014 revenue projection of $198.5 - $201.0 million. The revised revenue guidance includes $29.0 - $30.0 million from the recently acquired AngioScore products, up from $27.0 million previously projected.

Net loss for 2014 is projected to be in the range of $37.0 - $38.0 million, or $0.88 - $0.90 per share, compared with $36.0 - $38.0 million, or $0.85 - $0.90 per share, previously projected. Non-GAAP net loss for 2014 is projected to be in the range of $11.3 - $12.3 million, or $0.27 - $0.29 per share, compared with $13.3 - $15.3 million, or $0.32 - $0.36 per share, previously projected. Adjusted EBITDA is anticipated to be in the range of $3.0 - $4.0 million, compared with break-even to $2.0 million previously.

Conference Call

Management will host an investment community conference call today beginning at 2:30 p.m. MT / 4:30 p.m. ET. Individuals interested in listening to the conference call may dial (877) 561-2747 for domestic callers or (973) 409-9689 for international callers, conference ID 14718839, or access the webcast on the investor relations section of the Company's Web site at: www.spectranetics.com. The webcast will be available on the Company's Web site for 14 days following the completion of the call.

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¹Constant currency, non-GAAP net loss, and Adjusted EBITDA are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" later in this release.

About Spectranetics

Spectranetics develops, manufactures, markets and distributes single-use medical devices used in minimally invasive procedures within the cardiovascular system. The Company's products are sold in over 65 countries and are used to treat arterial blockages in the heart and legs and in the removal of pacemaker and defibrillator leads.

Spectranetics recently acquired AngioScore, Inc., a leading developer, manufacturer and marketer of cardiovascular, specialty balloons.

The Company's Vascular Intervention (VI) products include a range of laser catheters for ablation of blockages in arteries above and below the knee as well as the AngioSculpt^® scoring balloon used in both peripheral and coronary procedures. The Company also markets support catheters to facilitate crossing of peripheral and coronary arterial blockages, and retrograde access and guidewire retrieval devices used in the treatment of peripheral arterial blockages, including chronic total occlusions. The Company markets aspiration and cardiac laser catheters to treat blockages in the heart.

The Lead Management (LM) product line includes excimer laser sheaths, dilator sheaths, mechanical sheaths and accessories for the removal of pacemaker and defibrillator cardiac leads.

For more information, visit www.spectranetics.com

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. You can identify these statements because they do not relate strictly to historical or current facts. Such statements may include words such as "anticipate," "will," "estimate," "expect," "look forward," "strive," "project," "intend," "should," "plan," "believe," "hope," "enable," "potential," and other words and terms of similar meaning in connection with any discussion of, among other things, future operating or financial performance, strategic initiatives and business strategies, clinical trials, regulatory or competitive environments, our intellectual property and product development. These forward-looking statements include, but are not limited to, statements regarding our expectation of continued growth and strength and the reasons for that growth, growth rates, strength, integration and product launches, and 2014 outlook including projected revenue, net loss and Adjusted EBITDA. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements and to note they speak only as of the date of this release. These risks and uncertainties may include financial results differing from guidance, inability to successfully integrate AngioScore into our business, market acceptance of excimer laser atherectomy technology and our vascular intervention and lead removal products, increasing price and product competition, increased pressure on expense levels resulting from expanded sales, marketing, product development and clinical activities, uncertain success of our strategic direction, dependence on new product development, loss of key personnel, uncertain success of or delays in our clinical trials, adverse results in any ongoing legal proceeding, or any legal proceeding in which we may become involved, adverse impact to our business of the health care reform and related legislation or regulations, including changes in reimbursements, continued or worsening adverse conditions in the general domestic and global economic markets and continued volatility and disruption of the credit markets, which affects the ability of hospitals and other health care systems to obtain credit and may impede our access to capital, intellectual property claims of third parties, availability of inventory from suppliers, adverse outcome of FDA inspections, the receipt of FDA approval to market new products or applications and the timeliness of any approvals, market acceptance of new products or applications, product defects, ability to manufacture sufficient volumes to fulfill customer demand, availability of vendor-sourced components at reasonable prices, unexpected delays or costs associated with any planned improvements to our manufacturing processes, and share price volatility due to the initiation or cessation of coverage, or changes in ratings, by securities analysts. For a further list and description of such risks and uncertainties that could cause our actual results, performance or achievements to materially differ from any anticipated results, performance or achievements, please see our previously filed SEC reports, including those risks set forth in our 2013 Annual Report on Form 10-K. We disclaim any intention or obligation to update or revise any financial or other projections or other forward-looking statements, whether because of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures in this release. Reconciliations of the non-GAAP financial measures used in this release to the most directly comparable GAAP measures for the respective periods, and an explanation of our use of these non-GAAP measures, can be found in "Reconciliation of Non-GAAP Financial Measures" immediately following the financial tables. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.

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