WINTER SPRINGS, Fla., Oct. 30, 2014 (GLOBE NEWSWIRE) -- IRADIMED CORPORATION (Nasdaq:IRMD), the leading provider of non-magnetic intravenous (IV) infusion pump systems that are safe for use during magnetic resonance imaging (MRI) procedures, today announced financial results for the three months ended September 30, 2014.
For the third quarter ended September 30, 2014, the Company reported revenue of $3.8 million, an increase of 54% compared to $2.5 million for the third quarter of 2013. Net income was $0.2 million, or $0.02 per diluted share, compared with net income of $0.3 million, or $0.03 per diluted share for the third quarter of 2013.
Gross profit was $2.9 million and gross profit margin was 74.8% for the third quarter of 2014, compared to gross profit of $1.8 million and gross profit margin of 73.0% for the third quarter of 2013. Domestic sales were approximately 93% of total revenue for the quarter, compared to 67% for the third quarter 2013.
The Company reported non-GAAP income from operations of $0.6 million, up 36% compared to $0.4 million in the third quarter of 2013. Non-GAAP net income was $0.03 per diluted share, which was consistent with the third quarter of 2013. Free cash flow for the quarter increased to $1.0 million compared to $0.1 million for the third quarter of 2013.
Roger Susi, Chief Executive Officer and President of IRADIMED, commented, “We continue to see high demand for our pump systems and that is evident in our 54% revenue growth and continued inflow of customer orders. However, our financial results were partially muted as we stopped all pump shipments domestically for the last month of the quarter. Since receiving the FDA warning letter, we have been focused on working diligently to address the FDA’s concerns and preparing our new 510(k) for submission. While in the FDA’s review process, we will focus on operational improvements so that we are more efficient once we resume shipping domestically. As for the team at IRADIMED, I am very proud of everyone. Our employees have remained positive and have collectively shown great confidence in the future of the company.”
Financial Guidance
The Company reiterated its revenue and earnings guidance for the fourth quarter 2014.
The Company expects revenue of approximately $3.0 million for the fourth quarter 2014 and a net loss of between $0.02 and $0.03 per diluted share.
Use of non-GAAP Financial Measures
The Company believes the use of non-GAAP income from operations, non-GAAP net income and free cash flow are helpful to our investors. These measures, which we refer to as our non-GAAP financial measures, are not prepared in accordance with GAAP. We calculate non-GAAP income from operations as income from operations excluding stock-based compensation expense. We calculate non-GAAP net income as net income excluding stock-based compensation expense, net of tax. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allow for meaningful comparisons between our operating results from period to period. We calculate free cash flow as net cash provided by operating activities less net cash used in investing activities for purchases of property and equipment. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic acquisitions and strengthening our balance sheet. All of our non-GAAP financial measures are important tools for financial and operational decision making and for evaluating our operating results.
A reconciliation of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in the table later in this release immediately following the condensed statements of cash flows. These non-GAAP financial measures should not be considered in isolation or as a substitute for a measure of the Company’s operating performance or liquidity prepared in accordance with U.S. GAAP and are not indicative of income from operations, net income, or cash provided by operating activities.
Conference Call
IRADIMED has scheduled a conference call to discuss this announcement beginning at 11:00 a.m. Eastern Time today, October 30, 2014. Individuals interested in listening to the conference call may do so by dialing 1-844-413-1781 for domestic callers, or 1-716-247-5767 for international callers, and entering the reservation code 19802174.
The conference call will also be available real-time via the internet at http://iradimed.com/en.us/investors/index.php and selecting Events & Presentation. A recording of the call will be available on the Company’s website following the completion of the call.
About IRADIMED CORPORATION
IRADIMED CORPORATION is the leading provider of non-magnetic IV infusion pump systems that are safe for use during MRI procedures. Other electromechanical medical devices and pumps contain magnetic and electronic parts that are potentially dangerous to operate in the presence of the powerful magnet that drives an MRI. The company’s MRidium (3850/3860+) IV pump systems have been designed with non-ferrous parts, ceramic ultrasonic motors, non-magnetic mobile stands and other special features in order to safely and predictably deliver anesthesia and other IV fluids during various MRI procedures. The Company’s pump solution provides a seamless approach to providing IV fluids before, during and after an MRI scan, which is important to critically-ill patients who cannot be removed from their vital medications, and children and infants who must generally be sedated in order to remain immobile during an MRI scan.
For more information please visit www.iradimed.com. MRidium is a trademark of IRADIMED CORPORATION.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Act of 1995, particularly statements regarding our expectations, beliefs, plans, intentions, future operations, financial condition and prospects, and business strategies. These statements relate to future events or our future financial performance or condition and involve unknown risks, uncertainties and other factors that could cause our actual results, level of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. The risks and uncertainties referred to above include, but are not limited to, risks associated with the Company’s domestic shipment stoppage for its MRidium pump pursuant to an FDA warning letter requesting us to submit a new 510(k) submission; a securities class-action lawsuit that has been filed against the Company in connection with the FDA warning letter and shipment stoppage; our reliance on a single product that is not currently being shipped domestically; unexpected costs, expenses and diversion of management attention resulting from the FDA warning letter and the related securities class-action lawsuit; potential disruptions in our limited supply chain for our products; actions of regulatory bodies, such as the FDA warning letter, that could delay, limit or suspend product development, manufacturing or sales; the effect of recalls, patient adverse events or deaths on our business; difficulties or delays in the development, production, manufacturing and marketing of new or existing products and services; changes in laws and regulations or in the interpretation or application of laws or regulations.
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