ALAMEDA, Calif., Feb. 28, 2017 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), a global healthcare company focused on interventional therapies, today reported financial results for the fourth quarter and full year ended December 31, 2016.
2016 Financial Highlights:
- Revenue of $73.1 million for the fourth quarter of 2016, an increase of 34.3%, or 33.9% in constant currency1, over the fourth quarter of 2015.
- Revenue of $263.3 million for the full year 2016, an increase of 41.5%, and same in constant currency1, over the prior year.
"We are extremely proud of our accomplishments in the fourth quarter and full year 2016. Both our Neuro and Peripheral Vascular businesses saw strong growth driven by several important product and geographic launches, as well as an uncharacteristically strong December," said Adam Elsesser, Penumbra's chairman, president and chief executive officer. "Tens of thousands of patients were treated with our products in 2016, and for that we are particularly proud. We also made significant strategic strides to position ourselves to treat multiple times that number of patients in the future."
Fourth Quarter 2016 Financial Results
Total revenue grew to $73.1 million for the fourth quarter of 2016 compared to $54.4 million for the fourth quarter of 2015, an increase of 34.3%, or 33.9% on a constant currency basis. The U.S. represented 66.5% of total revenue and international represented 33.5% of total revenue for the fourth quarter of 2016. Revenue from sales of neuro products grew to $51.4 million for the fourth quarter of 2016, an increase of 31.5%, or 30.7% on a constant currency basis. Revenue from sales of peripheral vascular products grew to $21.8 million for the fourth quarter of 2016, an increase of 41.5%, or 41.9% on a constant currency basis.
Gross profit was $46.6 million, or 63.7% of total revenue, for the fourth quarter of 2016, compared to $36.5 million, or 67.0% of total revenue, for the fourth quarter of 2015.
Total operating expenses were $47.7 million, or 65.3% of total revenue, for the fourth quarter of 2016, compared to $34.6 million, or 63.7% of total revenue, for the fourth quarter of 2015. R&D expenses were $6.1 million for the fourth quarter of 2016, compared to $5.5 million for the fourth quarter of 2015. SG&A expenses were $41.6 million for the fourth quarter of 2016, compared to $29.2 million for the fourth quarter of 2015.
Operating loss was $1.2 million for the fourth quarter of 2016, compared to an operating profit of $1.8 million for the fourth quarter of 2015. In the quarter, the Company early adopted a new accounting standard related to stock compensation which will be included in the provision for income tax in the quarter. The impact from the beginning of the year will also be applied to the tax provision for the full year 2016.
As of December 31, 2016, cash and cash equivalents and marketable investments totaled $128.8 million.
Full Year 2016 Financial Results
Total revenue grew to $263.3 million for the year ended December 31, 2016, compared to $186.1 million for 2015, an increase of 41.5%, and same on a constant currency basis. The U.S. represented 66.9% of total revenue and international represented 33.1% of total revenue for the year ended December 31, 2016. Revenue from sales of neuro products grew to $185.5 million for 2016, an increase of 31.2%, or 31.0% on a constant currency basis. Revenue from sales of peripheral vascular products grew to $77.8 million for 2016, an increase of 74.1%, or 74.5% on a constant currency basis.
Gross profit was $170.8 million, or 64.9% of total revenue, for the year ended December 31, 2016, compared to $124.1 million, or 66.7% of total revenue, for the year ended December 31, 2015.
Total operating expenses were $172.2 million, or 65.4% of total revenue, for the year ended December 31, 2016, compared to $119.9 million, or 64.4% of total revenue, for the year ended December 31, 2015. R&D expenses were $23.9 million for the year ended December 31, 2016, compared to $18.0 million for the year ended December 31, 2015. SG&A expenses were $148.3 million for the year ended December 31, 2016, compared to $101.9 million for the year ended December 31, 2015.
Operating loss was $1.4 million for the year ended December 31, 2016, compared to operating profit of $4.2 million for the year ended December 31, 2015. The benefit from income taxes was $15.7 million for the year ended December 31, 2016, which includes a benefit of $17.2 million due to the impact of applying the new stock compensation standard in the tax provision. This compares to a provision for income taxes of $1.7 million for the year ended December 31, 2015.
Full Year 2017 Financial Outlook
Penumbra projects total revenue for 2017 to be in the range of $312 to $317 million.
Webcast and Conference Call Information
Penumbra, Inc. will host a conference call to discuss the fourth quarter and full year 2016 financial results after market close on Tuesday, February 28, 2017 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: 58689898), or the webcast can be accessed on the "Events" section under the "Investors" tab 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.
About Penumbra
Penumbra, Inc., headquartered in Alameda, California is a global healthcare company focused on interventional therapies. We design, develop, manufacture and market innovative devices and have a broad portfolio of products that addresses 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.
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