NATICK, Mass., Feb. 4 /PRNewswire-FirstCall/ -- Boston Scientific Corporation today announced financial results for the fourth quarter and full year ended December 31, 2007, as well as guidance for net sales and earnings per share (EPS) for the first quarter of 2008.
"The turn that began last quarter continued this quarter, with strong adjusted earnings and record sales," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "For the year, we made substantial progress toward our goals of increasing shareholder value, restoring profitable sales growth and strengthening Boston Scientific for the future. We implemented a series of initiatives designed to focus and simplify our business, including expense and head count reductions and the sale of non- strategic assets. We reported record sales, and we achieved the leadership position in the global stent market. Perhaps our most meaningful progress came in quality, where we revolutionized our approach and changed our culture. Many of the steps we took in 2007 will help position us for the challenges and opportunities of 2008 and beyond. In 2008, those opportunities are expected to include the introduction of a number of important new CRM products, the lifting of the Corporate Warning Letter, the approval of the TAXUS Liberte and PROMUS(TM) stent systems by the FDA, and the launch of profitable new products across our businesses."
Fourth Quarter 2007
Net sales for the fourth quarter of 2007 were $2.152 billion, as compared to $2.065 billion for the fourth quarter of 2006. Worldwide sales of the Company's drug-eluting coronary stent systems were $435 million, as compared to $506 million. U.S. sales of drug-eluting coronary stent systems were $224 million, as compared to $329 million. International sales of drug-eluting coronary stent systems were $211 million, as compared to $177 million. Worldwide sales of coronary stent systems were $496 million, as compared to $550 million. U.S. sales of coronary stent systems were $250 million, as compared to $347 million. International sales of coronary stent systems were $246 million, as compared to $203 million.
Worldwide sales of the Company's CRM business for the fourth quarter of 2007 were $544 million, which included $396 million of implantable cardioverter defibrillator (ICD) sales, as compared to worldwide CRM sales of $489 million for the fourth quarter of 2006, which included $356 million of ICD sales. U.S. CRM sales were $347 million, which included $266 million of ICD sales, as compared to $320 million, which included $250 million of ICD sales. International CRM sales were $197 million, which included $130 million of ICD sales, as compared to $169 million, which included $106 million of ICD sales.
Reported net loss for the fourth quarter of 2007 was $458 million, or $0.31 per share. Reported results included acquisition, divestiture, litigation and restructuring-related charges and amortization expense (pre-tax) of $939 million, or $0.55 per share, which consisted of:
Adjusted net income for the quarter, excluding these charges and amortization expense, was $355 million, or $0.24 per share.
Reported net income for the fourth quarter of 2006 was $277 million, or $0.19 per share. Reported results included charges associated with the Company's 2006 acquisition of Guidant Corporation and amortization expense (pre-tax) of $197 million, or $0.11 per share. Adjusted net income for the fourth quarter of 2006, excluding these charges and amortization expense, was $442 million, or $0.30 per share.
Full Year 2007
Net sales for the full year 2007 were $8.357 billion, as compared to $7.821 billion in 2006. Worldwide sales of the Company's drug-eluting coronary stent systems were $1.788 billion, as compared to $2.358 billion. U.S. sales of drug-eluting coronary stent systems were $1.006 billion, as compared to $1.561 billion. International sales of drug-eluting coronary stent systems were $782 million, as compared to $797 million. Worldwide sales of coronary stent systems were $2.027 billion, as compared to $2.506 billion. U.S. sales of coronary stent systems were $1.110 billion, as compared to $1.613 billion. International sales of coronary stent systems were $917 million, as compared to $893 million.
Worldwide sales of the Company's CRM business in 2007 were $2.124 billion, which included $1.542 billion of ICD sales, as compared to $1.371 billion in 2006, which included $988 million of ICD sales. On a pro forma basis for 2006 -- as though the Company had acquired Guidant on January 1, 2006 -- CRM sales were $2.026 billion, which included $1.473 billion of ICD sales. U.S. CRM sales in 2007 were $1.371 billion, which included $1.053 billion of ICD sales, as compared to U.S. CRM sales of $908 million, which included $696 million of ICD sales. Pro forma U.S. CRM sales were $1.358 billion, which included $1.053 billion of ICD sales. International CRM sales in 2007 were $753 million, which included $489 million of ICD sales, as compared to international CRM sales of $463 million, which included $292 million of ICD sales. Pro forma international CRM sales were $668 million, which included $420 million of ICD sales.
Reported net loss for 2007 was $495 million, or $0.33 per share. Reported results for 2007 included acquisition, divestiture, litigation and restructuring-related charges, and amortization expense (pre-tax) of $1.9 billion, or $1.10 per share, which consisted of:
Adjusted net income for 2007, excluding these charges and amortization expense, was $1.2 billion, or $0.77 per share.
Reported net loss for 2006 was $3.6 billion, or $2.81 per share. Reported results for 2006 included acquisition-related charges and amortization expense (pre-tax) of $5.2 billion, or $3.90 per share. Adjusted net income for 2006, excluding these charges and amortization expense, was $1.4 billion, or $1.09 per share.
Guidance for First Quarter 2008
The Company estimates net sales for the first quarter of 2008 of between $1.96 billion and $2.08 billion. Adjusted earnings, excluding acquisition, divestiture, litigation and restructuring-related charges, and amortization expense, are estimated to range between $0.15 and $0.20 per share. The Company estimates net income on a GAAP basis of between $0.13 and $0.18 per share.
Full-year 2008 sales and earnings per share guidance will be provided during the Company's conference call with analysts tomorrow.
Boston Scientific officials will be discussing these results with analysts on a conference call at 8:30 am. (ET) Tuesday, February 5, 2008. The Company will webcast the call to all interested parties through its website: http://www.bostonscientific.com. Please see the website for details on how to access the webcast. The webcast will be available for one year on the Boston Scientific website.
Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: http://www.bostonscientific.com.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words. These forward- looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our financial performance, our restructuring plan, our programs to increase shareholder value, new product approvals, litigation, our growth strategy, market recovery and our market position. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.
Factors that may cause such differences include, among other things: future economic, competitive, reimbursement and regulatory conditions; new product introductions; demographic trends; intellectual property; litigation; financial market conditions; and, future business decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item IA- Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file thereafter. We disclaim any intention or obligation to publicly update or revise any forward- looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this document.
Use of non-GAAP Financial Information
To supplement Boston Scientific's consolidated condensed financial statements presented on a GAAP basis, the Company discloses certain non-GAAP measures that exclude certain charges, including non-GAAP net income/loss and non-GAAP net income/loss per diluted share. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. A reconciliation of the non-GAAP financial measures to the corresponding GAAP measures is included in the tables below. In addition, an explanation of the ways in which Boston Scientific management uses these non-GAAP measures to evaluate its business, the substance behind Boston Scientific management's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Boston Scientific management compensates for those limitations, and the substantive reasons why Boston Scientific management believes that these non-GAAP measures provide useful information to investors is included under "Use of Non-GAAP Financial Measures" after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with GAAP.
CONTACT: Paul Donovan, Media Relations, +1-508-650-8541, office,
+1-508-667-5165, mobile, or Dan Brennan, Investor Relations,
+1-508-650-8538, office, both of Boston Scientific Corporation
Web site: http://www.bostonscientific.com//
