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Business Wire 31-Oct-2019 7:00 AM
Abiomed, Inc. (NASDAQ:ABMD), a leading provider of breakthrough heart recovery and support technologies, today reported second quarter fiscal 2020 revenue of $205.0 million, an increase of 13% compared to revenue of $181.8 million for the same period of fiscal 2019. Operating income was $60.2 million, up 20%, compared to $50.3 million in the same period of fiscal 2019.
Financial and operating highlights for the second quarter fiscal 2020 include:
"We are pleased that this quarter demonstrated our ability to leverage best practices and support strategies to improve clinical outcomes overall for high risk PCI, cardiogenic shock and right heart failure," said Michael R. Minogue, Chairman, President and Chief Executive Officer, Abiomed, Inc. "We have made progress on our key initiatives in the quarter, but we still have more work to do. Our innovation and ability to improve clinical outcomes remains the driver for Impella adoption through a function of training, data and time."
FISCAL YEAR 2020 OUTLOOK
The company is maintaining its fiscal year 2020 guidance for total revenue to be in the range of $885 million to $925 million, an increase of 15% to 20% over the prior year. The company is also maintaining its fiscal year 2020 guidance for GAAP operating margin to be in the range of 28% to 30%.
EARNINGS CONFERENCE CALL DETAILS
The company will host a conference call to discuss the results at 8:00 a.m. EDT on Thursday, October 31, 2019. The conference call releasing full quarterly results will be hosted by Michael R. Minogue, Chairman, President and Chief Executive Officer and Todd A. Trapp, Vice President and Chief Financial Officer.
To listen to the call live, please tune into the webcast via https://edge.media-server.com/mmc/p/7yfz5bxh or dial (855) 212-2361; the international number is (678) 809-1538. A replay of this conference call will be available beginning at 11:00 a.m. EDT October 31, 2019 through 11:00 a.m. EST on November 7, 2019. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 7594662.
ABOUT ABIOMED
Based in Danvers, Massachusetts, USA, Abiomed, Inc. is a leading provider of medical devices that provide circulatory support. Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information, please visit: www.abiomed.com. Abiomed, Impella, Impella 2.5, Impella 5.0, Impella LD, Impella CP, Impella RP, and Impella Connect are registered trademarks of Abiomed, Inc., and are registered in the U.S. and certain foreign countries. Impella BTR, Impella 5.5, Impella ECP, CVAD Study, and SmartAssist are pending trademarks of Abiomed, Inc.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements, including, without limitation, statements regarding development of Abiomed's existing and new products, the company's progress toward commercial growth, and future opportunities and expected regulatory approvals. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements may be accompanied by such words as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "project," "target," "should," "likely," "will" and other words and terms of similar meaning. The company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including, without limitation: the company's dependence on Impella® products for all of its revenues; the company's ability to successfully compete against its existing or potential competitors; the acceptance of the company's products by cardiac surgeons and interventional cardiologists; long sales and training cycles associated with expansion into new hospital cardiac centers; reduced market acceptance of the company's products due to lengthy clinician training process; the company's ability to effectively manage its growth; the company's ability to successfully commercialize its products; the company's ability to obtain regulatory approvals and market and sell its products in certain jurisdictions; enforcement actions and product liability suits relating to off-label uses of the company's products; unsuccessful clinical trials or procedures relating to products under development; the company's ability to maintain compliance with regulatory requirements; the failure of third-party payers to provide reimbursement of the company's products; the company's ability to increase manufacturing capacity to support continued demand for its products; the company or its vendors' failure to achieve and maintain high manufacturing standards; the failure of the company's suppliers to provide the components the company requires; the company's ability to expand its direct sales activities into international markets; the outcome of ongoing securities class action litigation relating to our public disclosures and other risks and challenges detailed in the company's filings with the Securities and Exchange Commission (the "SEC"), including the most recently filed Annual Report on Form 10-K and the filings subsequently filed with or furnished to the SEC. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. Unless otherwise required by law, 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) | ||||||||
September 30, 2019 | March 31, 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
150,279 |
|
$ |
121,021 |
|
||
Short-term marketable securities |
|
295,041 |
|
|
370,677 |
|
||
Accounts receivable, net |
|
94,319 |
|
|
90,809 |
|
||
Inventories |
|
90,295 |
|
|
80,942 |
|
||
Prepaid expenses and other current assets |
|
17,498 |
|
|
13,748 |
|
||
Total current assets |
|
647,432 |
|
|
677,197 |
|
||
Long-term marketable securities |
|
106,025 |
|
|
21,718 |
|
||
Property and equipment, net |
|
157,896 |
|
|
145,005 |
|
||
Goodwill |
|
31,727 |
|
|
32,601 |
|
||
In-process research and development |
|
14,800 |
|
|
15,208 |
|
||
Long-term deferred tax assets, net |
|
67,277 |
|
|
77,502 |
|
||
Other assets |
|
99,191 |
|
|
85,115 |
|
||
Total assets |
$ |
1,124,348 |
|
$ |
1,054,346 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable |
$ |
31,736 |
|
$ |
32,185 |
|
||
Accrued expenses |
|
57,907 |
|
|
57,420 |
|
||
Deferred revenues |
|
19,322 |
|
|
16,393 |
|
||
Other current liabilities |
|
3,264 |
|
— | ||||
Total current liabilities |
|
112,229 |
|
|
105,998 |
|
||
Contingent consideration |
|
10,236 |
|
|
9,575 |
|
||
Long-term deferred tax liabilities |
|
800 |
|
|
822 |
|
||
Other long-term liabilities |
|
9,626 |
|
|
1,061 |
|
||
Total liabilities |
|
132,891 |
|
|
117,456 |
|
||
Commintments 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 |
|
452 |
|
|
451 |
|
||
Authorized - 100,000,000 shares; Issued - 47,484,911 shares at September 30, 2019 and 47,026,226 shares at March 31, 2019 | ||||||||
Outstanding - 45,238,952 shares at September 30, 2019 and 45,122,985 shares at March 31, 2019 | ||||||||
Additional paid in capital |
|
722,020 |
|
|
690,507 |
|
||
Retained earnings |
|
501,467 |
|
|
399,473 |
|
||
Treasury stock at cost - 2,245,959 shares at September 30, 2019 and 1,903,241 shares at March 31, 2019 |
|
(214,926 |
) |
|
(138,852 |
) |
||
Accumulated other comprehensive loss |
|
(17,556 |
) |
|
(14,689 |
) |
||
Total stockholders' equity |
|
991,457 |
|
|
936,890 |
|
||
Total liabilities and stockholders' equity |
$ |
1,124,348 |
|
$ |
1,054,346 |
|
Abiomed, Inc. and SubsidiariesConsolidated Statements of Operations (Unaudited)(in thousands, except per share data) | ||||||||
For the Three Months Ended September 30, | For the Six Months Ended September 30, | |||||||
2019 |
2018 |
2019 |
2018 |
|||||
Revenue |
$204,974 |
$181,778 |
$412,640 |
$361,788 |
||||
Costs and expenses: | ||||||||
Cost of revenue |
34,867 |
29,846 |
71,940 |
60,696 |
||||
Research and development |
23,969 |
22,717 |
47,759 |
43,990 |
||||
Selling, general and administrative |
85,956 |
78,895 |
172,034 |
160,034 |
||||
144,792 |
131,458 |
291,733 |
264,720 |
|||||
Income from operations |
60,182 |
50,320 |
120,907 |
97,068 |
||||
Other (expenses) income: | ||||||||
Investment income, net |
2,932 |
1,671 |
5,981 |
3,222 |
||||
Other (expense) income, net |
(45,756) |
(158) |
(6,392) |
30 |
||||
(42,824) |
1,513 |
(411) |
3,252 |
|||||
Income before income taxes |
17,358 |
51,833 |
120,496 |
100,320 |
||||
Income tax provision (benefit) |
4,287 |
1,706 |
18,502 |
(39,873) |
||||
Net income (A) |
$13,071 |
$50,127 |
$101,994 |
$140,193 |
||||
Basic net income per share |
$0.29 |
$1.11 |
$2.25 |
$3.13 |
||||
Basic weighted average shares outstanding |
45,319 |
44,961 |
45,267 |
44,754 |
||||
Diluted net income per share (B) |
$0.28 |
$1.09 |
$2.22 |
$3.04 |
||||
Diluted weighted average shares outstanding |
45,912 |
46,153 |
46,031 |
46,164 |
||||
(A) Net income includes the effect of the following items: | ||||||||
Excess tax benefits related to stock-based compensation awards (1) |
$(469) |
$(12,928) |
$(13,290) |
$(66,765) |
||||
Unrealized loss on investment in Shockwave Medical - net of tax (2) |
34,508 |
— |
$4,496 |
— | ||||
$34,039 |
$(12,928) |
$ (8,794) |
$(66,765) |
|||||
(B) Diluted net income per share includes the effect of the following items: | ||||||||
Excess tax benefits related to stock-based compensation awards (1) |
$(0.01) |
$(0.28) |
$(0.29) |
$(1.45) |
||||
Unrealized loss on investment in Shockwave Medical (2) |
0.75 |
— |
0.10 |
— | ||||
$0.74 |
$(0.28) |
$(0.19) |
$ (1.45) |
(1) Amount represents the impact of excess tax benefits and shortfalls associated with stock-based awards in each respective period presented.
(2) In the second quarter of fiscal 2020, the company recorded an unrealized loss on its investment in Shockwave Medical of $45.8 million ($34.5 million, net of tax benefit) and is recorded within other income (expense), net.
View source version on businesswire.com: https://www.businesswire.com/news/home/20191031005284/en/