SAN DIEGO, Sept. 29, 2014 /PRNewswire/ -- Volcano
Corporation (Nasdaq: VOLC), a leading company focused on improving
patient and economic outcomes on a global basis by developing and
delivering innovative minimally invasive coronary and peripheral
visualization, physiology diagnostics and therapies, today
confirmed receipt of a letter to its Board of Directors from
Engaged Capital, LLC. The Company issued the following
statement in response:
Volcano welcomes the perspectives of its shareholders, and has a
longstanding policy of open communications with all of our
investors, including Engaged Capital. The Company will carefully
review and consider the ideas presented in the letter and continue
its dialogue with Engaged Capital.
The Volcano Board of Directors and management team regularly
evaluate the Company's strategic priorities, capital structure and
allocation towards the goal of enhancing value for all
shareholders. The Company is taking the right steps to manage
the business while focusing on strategic initiatives to position
Volcano for long-term success. Notably, Volcano continues to
execute on a long-term strategy focused on coronary imaging and
physiology leadership, peripheral expansion, profitability and
business scale, with the goal of creating value for shareholders.
Actions taken in 2014 include:
- Realigning portfolio to improve top-line growth, including
the acquisition of AtheroMed,
Inc. and the planned divestiture of Axsun Technologies, Inc.;
- Building on market leadership in Coronary Imaging and
Physiology segments, supported by the global LMR of Sync-RX®
Systems, iFR® adenosine free FFR global launch, and Veratta® FFR
wires global launch;
- Expanding presence in peripheral market through leadership
position of Intravascular Imaging, supported by Pioneer Plus, Crux®
and AtheroMed Phoenix roll out;
- Enhancing financial leverage and profitability, through
effective SG&A, capital allocation strategy and financial
discipline, as well as improving gross margins with the transition
of disposable manufacturing to Costa
Rica; and
- Settling all existing litigation with St. Jude Medical, Inc.,
significantly reducing legal expenses.
In addition, in December 2013,
Volcano's Board of Directors authorized a $200 million share repurchase program,
$100 million of which was executed
under an Accelerated Share Repurchase.
About Volcano Corporation
Through its multi-modality platform, Volcano Corporation is the
global leader in intravascular imaging for coronary and peripheral
applications, and physiology. The company also offers a suite of
peripheral therapeutic devices. The company's broad range of
technologies makes imaging and therapy simpler, more informative
and less invasive and offers physicians and their patients around
the world with industry-leading tools that aid diagnosis and guide
and provide therapy. Founded in cardiovascular care and expanding
into other specialties, Volcano is focused on improving patient and
economic outcomes. For more information, visit the company's
website at www.volcanocorp.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Any statements in this press release regarding Volcano's
business that are not historical facts may be considered
"forward-looking statements," including statements regarding
Volcano's expected revenue growth and margins; its growth and other
strategies and ability to execute on these strategies; development
of its base business and pipeline; product launches; benefits from
recent acquisitions; and benefits from its products and
technologies, including new products. Forward-looking statements
are based on management's current expectations and are subject to
risks and uncertainties that may cause Volcano's actual results to
differ materially and adversely from statements contained herein.
Some of the potential risks and uncertainties that could cause
actual results to differ include the risks that Volcano's revenue,
margins, or other projections may turn out to be inaccurate or
Volcano may encounter unanticipated difficulty in achieving these
projections; global and regional macroeconomic conditions,
generally, and in the medical device industry, specifically;
currency exchange rate fluctuations; the effect of competitive
factors and the company's reactions to those factors; purchasing
decisions with respect to the company's products; the pace and
extent of market adoption of the company's products and
technologies; the success of Volcano's growth and other strategies,
including the integration of recently-acquired businesses; the
impact and benefits of market development; our ability to protect
our intellectual property; dependence upon third parties;
unexpected new data, safety and technical issues; market conditions
and other risks inherent to medical device development and
commercialization. These and additional risks and uncertainties are
fully described in Volcano's filings made with the Securities and
Exchange Commission, including our 10-Q for the quarter ended
June 30, 2014. Undue reliance should
not be placed on forward-looking statements, which speak only as of
the date they are made. Volcano disclaims any obligation to update
any forward-looking statements to reflect new information, events
or circumstances after the date they are made, or to reflect the
occurrence of unanticipated events.
SOURCE Volcano Corporation