Volcano Corporation Issues Statement Regarding Letter From Engaged Capital
SAN DIEGO, Sept. 29, 2014 /PRNewswire/ -- Volcano Corporation (Nasdaq: VOLC), a leading company focused on improving patient and economic outcomes on a global basis by developing and delivering innovative minimally invasive coronary and peripheral visualization, physiology diagnostics and therapies, today confirmed receipt of a letter to its Board of Directors from Engaged Capital, LLC. The Company issued the following statement in response:
Volcano welcomes the perspectives of its shareholders, and has a longstanding policy of open communications with all of our investors, including Engaged Capital. The Company will carefully review and consider the ideas presented in the letter and continue its dialogue with Engaged Capital.
The Volcano Board of Directors and management team regularly evaluate the Company’s strategic priorities, capital structure and allocation towards the goal of enhancing value for all shareholders. The Company is taking the right steps to manage the business while focusing on strategic initiatives to position Volcano for long-term success. Notably, Volcano continues to execute on a long-term strategy focused on coronary imaging and physiology leadership, peripheral expansion, profitability and business scale, with the goal of creating value for shareholders. Actions taken in 2014 include:
- Realigning portfolio to improve top-line growth, including the acquisition of AtheroMed, Inc. and the planned divestiture of Axsun Technologies, Inc.;
- Building on market leadership in Coronary Imaging and Physiology segments, supported by the global LMR of Sync-RX® Systems, iFR® adenosine free FFR global launch, and Veratta® FFR wires global launch;
- Expanding presence in peripheral market through leadership position of Intravascular Imaging, supported by Pioneer Plus, Crux® and AtheroMed Phoenix roll out;
- Enhancing financial leverage and profitability, through effective SG&A, capital allocation strategy and financial discipline, as well as improving gross margins with the transition of disposable manufacturing to Costa Rica; and
- Settling all existing litigation with St. Jude Medical, Inc., significantly reducing legal expenses.
In addition, in December 2013, Volcano’s Board of Directors authorized a $200 million share repurchase program, $100 million of which was executed under an Accelerated Share Repurchase.
About Volcano Corporation
Through its multi-modality platform, Volcano Corporation is the global leader in intravascular imaging for coronary and peripheral applications, and physiology. The company also offers a suite of peripheral therapeutic devices. The company’s broad range of technologies makes imaging and therapy simpler, more informative and less invasive and offers physicians and their patients around the world with industry-leading tools that aid diagnosis and guide and provide therapy. Founded in cardiovascular care and expanding into other specialties, Volcano is focused on improving patient and economic outcomes. For more information, visit the company’s website at www.volcanocorp.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release regarding Volcano’s business that are not historical facts may be considered “forward-looking statements,” including statements regarding Volcano’s expected revenue growth and margins; its growth and other strategies and ability to execute on these strategies; development of its base business and pipeline; product launches; benefits from recent acquisitions; and benefits from its products and technologies, including new products. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that may cause Volcano’s actual results to differ materially and adversely from statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ include the risks that Volcano’s revenue, margins, or other projections may turn out to be inaccurate or Volcano may encounter unanticipated difficulty in achieving these projections; global and regional macroeconomic conditions, generally, and in the medical device industry, specifically; currency exchange rate fluctuations; the effect of competitive factors and the company’s reactions to those factors; purchasing decisions with respect to the company’s products; the pace and extent of market adoption of the company’s products and technologies; the success of Volcano’s growth and other strategies, including the integration of recently-acquired businesses; the impact and benefits of market development; our ability to protect our intellectual property; dependence upon third parties; unexpected new data, safety and technical issues; market conditions and other risks inherent to medical device development and commercialization. These and additional risks and uncertainties are fully described in Volcano’s filings made with the Securities and Exchange Commission, including our 10-Q for the quarter ended June 30, 2014. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Volcano disclaims any obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
SOURCE Volcano Corporation
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