ALAMEDA, Calif., Nov. 3, 2016 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), a global interventional therapies company, today reported financial results for the third quarter ended September 30, 2016.
- Revenue of $67.2 million in the third quarter of 2016, an increase of 33.3%, or 32.5% in constant currency1, over the third quarter of 2015.
Third Quarter 2016 Financial Results
Total revenue grew to $67.2 million for the third quarter of 2016 compared to $50.4 million for the third quarter of 2015, an increase of 33.3%, or 32.5% on a constant currency basis. The U.S. represented 66.1% of total revenue and international represented 33.9% of total revenue for the third quarter of 2016. Revenue from sales of neuro products grew to $47.5 million for the third quarter of 2016, an increase of 30.9%, or 29.9% on a constant currency basis. Revenue from sales of peripheral vascular products grew to $19.7 million for the third quarter of 2016, an increase of 39.3%, or 39.4% on a constant currency basis.
Gross profit was $42.9 million, or 63.8% of total revenue, for the third quarter of 2016, compared to $33.5 million, or 66.4% of total revenue, for the third quarter of 2015.
Total operating expenses were $44.2 million, or 65.8% of total revenue, for the third quarter of 2016, compared to $31.3 million, or 62.1% of total revenue, for the third quarter of 2015. R&D expenses were $6.5 million for the third quarter of 2016, compared to $4.6 million for the third quarter of 2015. SG&A expenses were $37.7 million for the third quarter of 2016, compared to $26.8 million for the third quarter of 2015.
Net loss for the third quarter of 2016 was $1.1 million, compared to net income of $0.9 million for the third quarter of 2015.
As of September 30, 2016, cash and cash equivalents and marketable investments totaled $141.8 million.
Webcast and Conference Call Information
Penumbra, Inc. will host a conference call to discuss the third quarter 2016 financial results after market close on Thursday, November 3, 2016 at 5:00 PM Eastern Time. The conference call can be accessed live over the phone by dialing (877) 201-0168 for domestic callers or (647) 788-4901 for international callers (conference id: 92689865), or the webcast can be accessed on the "Investors" section of the Company's website at: www.penumbrainc.com. The webcast will be available on the Company's website for two weeks following the completion of the call.
Penumbra, Inc., headquartered in Alameda, California, is a global interventional therapies company that designs, develops, manufactures and markets innovative medical devices. The company has a broad portfolio of products that address challenging medical conditions and significant clinical needs across two major markets, neuro and peripheral vascular. Penumbra sells its products to hospitals primarily through its direct sales organization in the U.S., most of Europe, Canada and Australia, and through distributors in select international markets. Penumbra and the Penumbra logo are trademarks of Penumbra, Inc.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company has disclosed the non-GAAP financial measure relating to constant currency revenue in this press release.
Our constant currency revenue disclosures estimate the impact of changes in foreign currency rates on the translation of the Company's current period revenue as compared to the applicable comparable period in the prior year. This impact is derived by taking the current local currency revenue and translating it into U.S. Dollars based upon the foreign currency exchange rates used to translate the local currency revenue for the applicable comparable period in the prior year, rather than the actual exchange rates in effect during the current period. It does not include any other effect of changes in foreign currency rates on the Company's results or business.
Full reconciliation of this non-GAAP measure to the most comparable GAAP measures is set forth in the tables below.
Our management believes the non-GAAP financial measure disclosed in this press release is useful to investors in assessing the operating performance of our business and provides a meaningful comparison to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. Specifically, we consider the change in constant currency revenue as a useful metric as it provides an alternative framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations.
The non-GAAP financial measure included in this press release may be different from, and therefore may not be comparable to, similarly titled measures used by other companies. Non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of the non-GAAP financial measure to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business.
Except for historical information, certain statements in this press release are forward-looking in nature and are subject to risks, uncertainties and assumptions about us.
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