Abiomed slashes Q2 losses on 17 percent sales boost

November 4, 2010 by Jaclyn Reiss

Abiomed Inc. cut its net losses by nearly 60 percent, logging a 16.8 percent top-line increase.

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Abiomed Inc. (NSDQ:ABMD) slashed its second-quarter net losses on a 16.8 percent top-line increase, posting what CEO Michael Minogue called the company's "best quarter in our 29-year history."

The Danvers, Mass.-based cardiac assist device maker reported net losses of $3.2 million, or 9 cents per diluted share, on sales of $23.4 million for the three months ended Sept. 30, compared with net losses of $7.7 million, or 21 cents per diluted share, on sales of $20.0 million during the same period last year.

"Despite the industry summer slowdown, the second quarter of fiscal 2011 demonstrated that our momentum is growing both year over year and sequentially on revenue, patients, and clinical evidence. In summary, the company executed and had the best quarter in our 29 year history," Minogue said in prepared remarks.

Sales of Abiomed's workhorse Impella pump, which accounts for more than 75 percent of total revenues, grew once again during the quarter, reaching $17.6 million, up 33 percent compared with the second quarter of fiscal 2010. Non-Impella revenue dropped 15 percent, from $6.8 million a year ago to $5.8 million in the just-ended quarter.

The strong results prompted Abiomed to raise its full-year revenue guidance to $93 million to $97 million.

ABMD shares closed at $10.90 yesterday, opening at $11.09 today. Shares were trading at $11.65 in mid-afternoon activity today.