Conceptus Inc. (NSDQ:CPTS) posted fourth-quarter sales of $37 million for the three months ended Dec. 31, 2009, up 29.6 percent compared with $28.5 million during the same period in 2008. Net income rose 66.9 percent to $6.6 million, compared with $4 million during QYY Q4 2008:
Press Release
Conceptus® Reports Fourth Quarter Sales
Growth of 30%, Diluted EPS of $0.21
-
Reports first profitable year with net income of $7.9 million, GAAP
diluted EPS of $0.25 and non-GAAP diluted EPS of $0.65 -
Generates $28.5 million in cash from operations during 2009, ends year
with over $105 million in cash and investments - Introduces 2010 financial guidance
MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Conceptus, Inc. (Nasdaq: CPTS), developer of the Essure®
procedure, the first proven non-surgical permanent birth control method
available, today reported financial results for the three and 12 months
ended December 31, 2009.
Net sales for the fourth quarter of 2009 were $37.0 million, an increase
of 30% compared with net sales of $28.5 million for the fourth quarter
of 2008. Net sales were slightly below the Company’s October 2009
guidance of $37.5 million to $38.0 million. Net sales for 2009 were
$131.4 million, an increase of 29% compared with net sales of $102.0
million for 2008.
Net income for the fourth quarter of 2009 was $6.6 million, or $0.21 per
diluted share, compared with net income for the same period of 2008 of
$4.0 million, or $0.13 per diluted share. These results were at the top
of the Company’s net income guidance range of $0.19 to $0.21 per diluted
share. Non-GAAP net income for the fourth quarter of 2009 was $10.3
million, or $0.33 per diluted share, compared with non-GAAP net income
for the prior year fourth quarter of $6.5 million, or $0.21 per diluted
share.
Net income for 2009 was $7.9 million, or $0.25 per diluted share,
compared with a net loss for 2008 of ($3.9) million or a loss of ($0.13)
per diluted share. Non-GAAP net income for 2009 was $20.3 million, or
$0.65 per diluted share, compared with non-GAAP net income for 2008 of
$7.0 million, or $0.23 per diluted share. The net income (loss) for the
three and 12 months ended December 31, 2008 has been revised on a
retrospective basis to comply with a change in accounting principle
adopted on January 1, 2009 with respect to the Company’s outstanding
convertible debt.
Domestic sales of the Essure system for the fourth quarter of
2009 increased 28% to $28.8 million and international sales increased
37% to $8.2 million, both compared with the prior year fourth quarter.
Domestic sales growth reflects continued increases in both the number of
physicians entering and completing training, and in the number of
certified physicians performing the Essure procedure in-office.
The percentage of domestic procedures performed in sites of minimal
anesthesia in the fourth quarter of 2009 was approximately 65%,
consistent with the third quarter of 2009. International sales growth
was positively impacted by the Company’s expansion into Brazil.
Gross profit for the fourth quarter of 2009 was $30.4 million, compared
with $22.6 million for the fourth quarter of 2008. Gross profit margin
was 82% of net sales for the fourth quarter of 2009 compared with 79%
for the fourth quarter of 2008. Gross profit margin for 2009 improved to
82% from 79% in 2008.
Total operating expenses for the fourth quarter of 2009 were $22.2
million, up from $17.7 million for the fourth quarter of 2008. Total
operating expenses for 2009 increased 17% to $92.7 million from $79.5
million in 2008.
Cash and cash equivalents were $61.7 million as of December 31, 2009, an
increase of $9.5 million from September 30, 2009. The Company generated
cash from operations in the fourth quarter of 2009 of $10.1 million and
$28.5 million for the full year. The Company ended 2009 with over $105
million in cash and investments.
“We are pleased to have achieved the top of our earnings guidance range
for 2009,” commented Mark Sieczkarek, president and chief executive
officer of Conceptus. “Fourth quarter growth in net sales of 30% was our
highest of the year and reflects the success of our awareness
initiatives. These financial results validate the powerful leverage of
the Essure business model, in that we have been able to
substantially grow the bottom line while continuing to invest in our
sales and consumer awareness programs.”
Financial Guidance
Conceptus provided financial guidance for the 2010 full year and first
quarter as follows:
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The Company expects 2010 net sales to be in the range of $160.0
million to $165.0 million, an increase of 22% to 26% compared with
2009 net sales of $131.4 million. -
The Company expects 2010 GAAP diluted EPS to be in the range of $0.50
to $0.55 and non-GAAP diluted EPS to be in the range of $0.99 to
$1.04, based on weighted average shares outstanding of 32.3 million. -
The Company expects first quarter 2010 net sales to be in the range of
$33.0 million to $34.0 million, GAAP diluted EPS to be in the range of
a loss of $(0.09) to $(0.10), and non-GAAP diluted EPS to be in the
range of $0.02 to $0.03, based on weighted average shares outstanding
of 31.8 million. The net loss in the first quarter is driven by
expenditures on the Company’s physician and patient awareness programs.
“In developing our 2010 guidance we believe we have accounted for the
continued success of our awareness programs offset by any impact of the
weak global economy and competition,” commented Mr. Sieczkarek. “We will
continue to invest in these strategic programs, which are expected to
lead to substantial earnings per share growth as we move through the
year. We look forward to building on the growth and momentum we have
exiting 2009.”