DANVERS, Mass., Feb. 2 /PRNewswire-FirstCall/ -- ABIOMED, Inc. today released financial results for its third fiscal quarter of 2006 that ended on December 31, 2005. Revenue for the third quarter of fiscal 2006 grew 10% to $10.5 million compared to the same period of fiscal 2005.
Recent financial and operating highlights include: * Revenue increased 10% on a consolidated basis to $10.5 million over the same quarter of the prior year. Total disposable VADs sold this quarter again exceeded 500 units. * Greater than 50% of third quarter fiscal 2006 revenue was derived from new products and programs launched since the beginning of fiscal 2004. * More customers participated in the AB5000(TM) Console Rental Program this quarter. ABIOMED did not offer the rental program in the third fiscal quarter of 2005. During the third fiscal quarter of 2006, approximately 40% of the second quarter rentals converted to sales. * The Company incurred a loss of $0.17 per share, or $4.4 million, compared to a loss of $0.01 per share, or approximately $0.2 million, in the third quarter of fiscal 2005. This was driven primarily by planned increases in R&D and SG&A of $4.5 million to generate growth and promote recovery awareness. Approximately 70% of the Company's R&D investments are focused around its VAD recovery platforms, its IMPELLA (R) technologies and other new products. * In order to continue to expand business in the United States and abroad, ABIOMED hired top sales talent from within the industry. ABIOMED added two new sales representatives in the U.S. This brings ABIOMED's total sales and clinical team to 30 in the U.S. and 10 in Europe. * In the U.S., the new AB5000 Console is now in 39 of the 119 transplant centers or 33%, and 57 of the 867 open heart centers or 7%. This quarter 1 in 4 transplant centers in the U.S. ordered at least 1 AB5000 Ventricle. * During the quarter, the Company completed productivity initiatives that are expected to generate approximately $1 million of annual cost savings to reinvest in the Company's global distribution.
"We have made encouraging progress establishing our core business of disposable VADs with strong gross margins. ABIOMED's momentum will grow with our expanded distribution and as we add new breakthrough technology to our product portfolio for heart recovery. Our momentum through our fiscal third quarter provides us with the confidence to reaffirm our full year 2006 revenue guidance of the low $40 millions," said Michael R. Minogue, Chairman, CEO and President of ABIOMED.
ABIOMED is currently the only company with FDA labeling on ventricular assist devices for all potentially recoverable indications. To date, more than 8,000 patients worldwide have been supported with these devices. Patients who have recovered included those suffering from cardiogenic shock resulting from myocardial infarction, myocarditis, postpartum cardiomyopathy, ventricular septal defect, refractory arrhythmias, failed heart transplants, right ventricular assistance with implantable LVAD (Left Ventricular Assist Device), and post-cardiotomy cardiogenic shock (PCCS). ABIOMED's devices encourage recovery and are easier to implant, utilizing cannula inserted through a small incision, rather than more traumatic bridge-to-transplant devices that core the ventricles and require heart-lung machines for implantation. The ABIOMED(R) AB5000(TM) System also allows patients to walk with the support of the console, which helps recovery.
CONFERENCE CALL AND WEBCAST INFORMATION
A conference call and webcast to discuss these results will occur on February 2, 2006 at 11:00 AM Eastern. To participate in this call within the U.S. and Canada, dial 888-202-2422; international callers should dial 913-981-5592. The conference ID is 4898808. A replay of the call will be available three hours after the call and will be available for five days. To access the replay within the U.S. and Canada, dial 888-203-1112; international callers should dial 719-457-0820. A webcast of the call, which will be live and then archived for two weeks, will also be available at http://www.abiomed.com.
ABOUT ABIOMED
Based in Danvers, Massachusetts, ABIOMED, Inc. (pronounced "AB'-EE-O-MED") is a leading developer, manufacturer and marketer of medical products designed to assist or replace the pumping function of the failing heart. ABIOMED currently manufactures and sells the AB5000(TM) Circulatory Support System and the BVS(R) 5000 Biventricular Support System for the temporary support of all patients with failing but potentially recoverable hearts. In Europe, ABIOMED offers the IMPELLA(R) RECOVER(R) minimally invasive cardiovascular support systems under CE Mark approval. The Company's AbioCor(R) Implantable Replacement Heart was the subject of an initial clinical trial under an Investigational Device Exemption from the United States Food and Drug Administration. The AbioCor has not been approved for commercial distribution, and is not available for use or sale outside of the initial clinical trial. For additional information please visit: http://www.abiomed.com.
IMPELLA(R) RECOVER(R) DEVICES
IMPELLA(R) RECOVER(R) products are investigational devices in the United States and are not yet available for sale in the United States.
Contacts: Daniel Sutherby Liza Heapes ABIOMED, INC. ABIOMED, INC. Chief Financial Officer Media Relations 978-646-1812 978-646-1668 ir@abiomed.commediarelations@abiomed.com FORWARD-LOOKING STATEMENTS
This Release contains forward-looking statements, including statements regarding development of ABIOMED's existing and new products, the Company's progress toward commercial growth, and future opportunities. The Company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including uncertainties associated with development, testing and related regulatory approvals, anticipated future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, competition, technological change, government regulation, future capital needs and uncertainty of additional financing and other risks and challenges detailed in the Company's filings with the Securities and Exchange Commission, including the Annual Report filed on Form 10-K. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this Release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this Release or to reflect the occurrence of unanticipated events.
ABIOMED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data) December 31, March 31, 2005 2005 ASSETS Current Assets: Cash and cash equivalents $ 7,907 $ 7,618 Short-term marketable securities 24,049 33,887 Accounts receivable, net of allowance for doubtful accounts of $124 at December 31, 2005 and $64 at March 31, 2005 8,416 8,635 Inventories 6,020 3,877 Prepaid expenses and other current assets 840 1,207 Total current assets 47,232 55,224 Long-term investments - 2,112 Property and equipment, net of accumulated depreciation of $11,743 and $10,867 at December 31, 2005 and March 31, 2005, respectively 3,870 2,804 Intangible assets, net 8,301 418 Goodwill 18,511 - Other assets 321 503 Total assets $78,235 $61,061 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 1,803 $ 1,132 Accrued expenses 4,279 3,623 Deferred revenues 391 127 Total current liabilities 6,473 4,882 Commitments and Contingencies Stockholders' Equity: Class B Preferred Stock, $.01 par value - Authorized - 1,000,000 Shares; Issued and outstanding - none - - Common Stock, $.01 par value Authorized - 100,000,000 shares; Issued - 26,379,005 shares at December 31, 2005 and 22,079,311 shares at March 31, 2005 Outstanding - 26,372,826 shares at December 31, 2005 and 22,079,311 shares at March 31, 2005 264 221 Additional paid-in capital 213,916 170,095 Deferred stock-based compensation (204) (278) Accumulated deficit (139,566) (113,859) Treasury stock, at cost; 6,179 shares at December 31, 2005 (66) - Accumulated other comprehensive loss (2,582) - Total stockholders' equity 71,762 56,179 Total liabilities and stockholders' equity $78,235 $61,061 ABIOMED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share and share data) Three Months Ended Nine Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2004 2005 2004 Revenues: Products $10,447 $ 9,551 $ 29,605 $27,293 Funded research and development 68 15 269 151 10,515 9,566 29,874 27,444 Costs and expenses: Cost of product revenues 2,801 2,457 7,582 6,643 Write-down of inventory 269 - 269 - Research and development 4,564 3,375 13,444 10,105 Selling, general and administrative 7,614 4,258 21,779 13,493 Expensed in-process research and development - - 13,306 - 15,248 10,090 56,380 30,241 Loss from operations (4,733) (524) (26,506) (2,797) Other income, net: Investment income 316 203 876 544 Foreign exchange gain (loss) (56) 116 (168) 120 Other 53 4 91 12 313 323 799 676 Net loss $(4,420) $ (201) $(25,707) $(2,121) Net loss per share: Basic $ (0.17) $ (0.01) $ (1.01) $ (0.10) Diluted $ (0.17) $ (0.01) $ (1.01) $ (0.10) Weighted average shares outstanding: Basic 26,350,871 21,952,158 25,447,494 21,779,858 Diluted 26,350,871 21,952,158 25,447,494 21,779,858
ABIOMED, Inc.CONTACT: Daniel Sutherby, Chief Financial Officer, +1-978-646-1812,ir@abiomed.com, or Liza Heapes, Media Relations, +1-978-646-1668,mediarelations@abiomed.com, both of ABIOMED, Inc.
Web site: http://www.abiomed.com/
