Thoratec Corp. reported third-quarter sales of $87.9 million during the three months ended Oct. 3, up 8.8 percent compared with $80.8 million during the same year. Net income soared 94.4 percent to $11.8 million, compared with $6.1 million during Q3 2008:
Thoratec Reports 14 Percent Growth in Cardiovascular Division Sales as Third Quarter Revenues Increase Nine Percent
Net income on a GAAP basis for the quarter ended
For the first nine months of fiscal 2009, revenues were
“We continued to see robust growth in our Cardiovascular Division–where year-to-date revenues are up nearly 30 percent–with continued strong adoption of our HeartMate® II LVAS (Left Ventricular Assist System) for Bridge-to-Transplantation (BTT) in both
Burbach said the company believes it remains on track to have Destination Therapy approval for the HeartMate II by early 2010. “We were recently informed by the
The company said it added five new HeartMate II centers in
For the first nine months of 2009, Cardiovascular Division revenues were
Gross margin on a GAAP basis in the third quarter of 2009 was 61.1 percent versus 60.3 percent a year ago. Non-GAAP gross margin, which is described later in this press release, was 61.7 percent versus 60.8 percent in the same period a year ago. Factors favorably impacting gross margin in the quarter included worldwide HeartMate II volume and the launch of the new HeartMate external peripherals, offset in part by the impact of foreign exchange, lower ITC volume and unfavorable manufacturing variances at ITC.
Operating expenses on a GAAP basis in the third quarter of 2009 were
On a GAAP basis, other income totaled
The company’s GAAP effective tax rate in the third quarter of 2009 was 32.6 percent versus 19.6 percent a year ago. The non-GAAP tax rate for the third quarter of 2009, which is described later in this press release, was 34.0 percent versus 30.9 percent a year ago. The increases in the tax rates were due to an increase in pre-tax earnings and lower tax-exempt interest.
On a non-GAAP basis, the company’s convertible debt was dilutive to the company’s fully diluted weighted average shares outstanding. The increase was approximately 7.3 million shares.
Cash and investments at the end of the third quarter of 2009 were
Guidance for Fiscal 2009
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. For a more detailed discussion of forward-looking statements, please see additional information below.
Revenues for 2009 are now expected to be in the range of
Conference Call/Webcast Information
GAAP TO NON-GAAP RECONCILIATION
Management uses these non-GAAP financial measures for financial and operational decision making, including in the determination of employee annual cash incentive compensation, as a means to evaluate period-to-period comparisons, as well as comparisons to our competitors’ operating results. Management also uses this information internally for forecasting and budgeting, as it believes that the measures are indicative of
Non-GAAP net income consists of GAAP net income, excluding, as applicable, the tax effected impact of share-based compensation expense, amortization of purchased intangibles, expenses associated with the retrospective adoption of the accounting for convertible debt instruments that may be settled in cash upon conversion, including partial settlements in accordance with
Non-GAAP net income per diluted share is defined as non-GAAP net income divided by the weighted average number of shares on a fully-diluted basis.
Non-GAAP gross profit and gross margin consist of GAAP gross profit and gross margin excluding share-based compensation expense.
Non-GAAP operating expenses consist of GAAP operating expenses excluding share-based compensation expense, amortization of purchased intangibles, and
Non-GAAP other income and expense consists of GAAP other income and expenses excluding expenses related to the accounting for convertible debt instruments that may be settled in cash upon conversion, including partial settlements, in accordance with ASC 470-20, Debt, and unrealized gains on the equity conversion option included in the
Non-GAAP tax rate consists of the GAAP tax rate adjusted for the tax effect of the adjustments from GAAP net income to non-GAAP net income.
Management believes that it is useful in measuring
Because of varying valuation methodologies, subjective assumptions and the variety of award types that companies can use,
Due to the subjective assumptions used to develop non cash interest expense related to the accounting for convertible debt instruments that may be settled in cash upon conversion, including partial settlements, in accordance with ASC 470-20, Debt,
To enable investors to compare
There are a number of limitations related to the use of non-GAAP financial measures. First, non-GAAP financial measures exclude some costs, namely share-based compensation, that are recurring expenses. Second, share-based compensation is part of an employee’s compensation package and as such may be useful for investors to consider. Third, the components of costs that we exclude in our non-GAAP financial measures calculations may differ from components that our peer companies exclude when they report their results from operations.
Non-GAAP financial measures should not be considered as a substitute for measures of financial performance in accordance with GAAP. However, these measures may provide additional insight into
The reconciliations of the forward looking non-GAAP financial measures to the most directly comparable GAAP financial measures in the tables below include all information reasonably available to