Cardiac pump maker Thoratec Corp. (NSDQ:THOR) soundly beat fourth-quarter estimates but tried to rein in expectations with a relatively cautious forecast for 2010, despite recent approvals that significantly expanded the prospects for its flagship device.
Overall revenues during 2009 for the Pleasanton, Calif.-based company rose 19 percent over the prior year, reaching $373.9 million. Fourth-quarter revenues of $104.5 million also were well above year-ago levels, climbing 22 percent.
Net income for the 12 months ended Jan. 2, 2010, was $28.6 million, or $0.49 per share, up $10.3 million from fiscal 2008. Fourth-quarter profit at Thoratec reached $9.3 million, or 16 cents per share, beating both the year-ago net and analyst estimates for the quarter by a nickel.
Revenue growth within Thoratec’s cardiovascular division was particularly strong, rising 71 percent to $280 million during the year, and was poised for continued gains during 2010.
The Food & Drug Administration signed off Jan. 20 on the company’s pre-market approval supplement for Medicare reimbursement certification of the HeartMate II heart-assist pump as a so-called “destination therapy.”
“We are looking forward to rolling out the HeartMate II for DT,” CEO Gary Burbach said in a prepared statement. FDA approval, he said, provides a new option to individuals with advanced heart failure who haven’t responded other therapies, adding that the company plans to soon target new and existing HeartMate II centers to build awareness among physicians and patients.
The company now has 120 HeartMate II centers in North America, along with another 91 international centers, picking up 33 centers overall during 2009.
Thoratec forecast total revenues during 2010 in a range between $420 million and $430 million. That works out to a $56 million gain, or 15 percent, from 2009, but was at the bottom of consensus analyst estimates for the year. Net income, excluding a one-time $8.5 million charge related to an acquisition, was forecast to be between 96 cents to $1.01 per share, a penny below the consensus.