SAN DIEGO, Feb. 24, 2014 /PRNewswire/ -- Volcano Corporation
(Nasdaq: VOLC), a leading developer and manufacturer of precision
guided therapy tools designed to enhance the diagnosis and
treatment of coronary and peripheral vascular disease, today
reported results for the fourth quarter and all of 2013.
For the quarter ended December 31,
2013, Volcano reported revenues of $103.3 million versus revenues of $102.5 million in the same period a year ago. On
a constant currency basis, revenues increased six percent
year-over-year after adjusting for a negative impact of
approximately $5.5 million from
foreign currency. Medical segment revenues increased approximately
one percent and six percent on a reported and constant currency
basis, respectively.
The company reported a net loss on a GAAP basis of $20.5 million, or $0.38 per share, in the fourth quarter of 2013,
versus net income of $2.5 million, or
$0.04 per diluted share, in the same
period a year ago. The results for the fourth quarter of 2013
include restructuring charges of $14.5
million related to a strategic reprioritization initiative
that began in the third quarter of 2013. Excluding
acquisition-related items, amortization of intangibles and non-cash
interest expense on convertible notes, net of tax, the company
reported a non-GAAP loss of $0.29 per
share.
For all of 2013, Volcano reported revenues of $393.7 million versus $381.9 million a year ago. This represents an
increase of three percent on a reported basis and eight percent on
a constant currency basis after adjusting for a $20.6 million negative effect from foreign
currency. Medical segment revenues increased four and nine percent
on a reported and constant currency basis, respectively.
The company reported a net loss on a GAAP basis of $34.5 million, or $0.63 per share, in 2013 versus net income on a
GAAP basis of $8.0 million, or
$0.15 per diluted share, in 2012. The
results for 2013 include restructuring charges of $19.4 million, a year-over-year increase of
approximately $3.0 million in
acquisition-related charges and a year-over-year increase in net
interest expense of $18.5 million
reflecting the company's convertible debt offering in the fourth
quarter of 2012. Excluding acquisition-related items, amortization
of intangibles and non-cash interest expense on convertible notes,
net of tax, the company reported a non-GAAP net loss of
$0.31 per share.
"Volcano had a very solid quarter throughout all of its
businesses and across all of our key geographies, with particular
strength in our U.S. IVUS (Intravascular Ultrasound) disposable
revenues as we increased our penetration of the peripheral market
and recorded contributions from the Pioneer Plus Re-Entry Catheter
that we acquired in the third quarter of 2013," said Scott Huennekens, president and chief executive
officer.
"We continued to experience share gains in Europe, where we realized a greater than 20
percent increase in our combined IVUS and FFR (Fractional Flow
Reserve) disposable revenues year-over-year. Also during the
quarter, we initiated the roll-out of several new products,
including the Pioneer Plus, our new Verrata FFR wire and the Crux
IVC (inferior vena cava) filter, and continued our limited market
release of our iFR (Instant Wave-Free Ratio) FFR technology in
Europe and Japan. We believe these products will provide
even more significant revenue contributions during 2014," he
added.
Guidance
The company provided guidance for 2014. Based on current foreign
currency exchange rates, it expects revenues on a reported basis
will be $413.0-$421.0 million, with
revenues on a constant currency basis in the range of $417.0-$425.0 million.
The company said it expects gross margins on a reported basis
will be in the range of 64.0-64.5 percent and that operating
expenses, including restructuring charges, will be 68.0-69.0
percent of revenues. On a reported basis, the company expects a
GAAP net loss of $0.57-$0.60 per
share. On a non-GAAP basis, the company expects a net loss per
share of $0.16-$0.19. Non-GAAP
results exclude acquisition-related expenses, amortization of
intangibles and non-cash interest expense, and assume an effective
tax rate of 35.0 percent for the GAAP to non-GAAP adjustments. The
company expects weighted average basic shares in 2014 will be
approximately 51.2 million shares.
For the first quarter of 2014, Volcano expects revenues in the
range of $94.0-$95.0 million on a
reported basis, and $98.0-$99.0
million on a constant currency basis. The company expects a
loss per share of $0.20-$0.21 on a
GAAP basis and $0.11-$0.12 on a
non-GAAP basis.
Conference Call Information
The company will hold a conference call at 2 p.m., Pacific Standard Time, (5 p.m., Eastern Standard Time), today. The
teleconference can be accessed by calling (631) 291-4555, passcode
36718821, or via the company's website at
http://www.volcanocorp.com. Please dial in or access the webcast
10-15 minutes prior to the beginning of the call. A replay of the
conference call will be available through March 3, at (404) 537-3406, passcode 36718821,
and via the company's website at http://www.volcanocorp.com.
About Volcano
Volcano Corporation (Nasdaq: VOLC) is revolutionizing the
medical device industry with a broad suite of technologies that
make imaging and therapy simpler, more informative and less
invasive. Our products empower physicians around the world with a
new generation of analytical tools that deliver more meaningful
information—using light and sound as the guiding elements. Founded
in cardiovascular care and expanding into other specialties,
Volcano is changing the assumption about what is possible in
improving patient outcomes by combining imaging and therapy
together. For more information, visit the company's website
www.volcanocorp.com.
Note Regarding the Use of Non-GAAP Financial Measures
The presentation of non-GAAP financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP. The company uses non-GAAP financial measures
for financial and operational decision making as a means to compare
period-to-period results. The company believes that they provide
useful information about operating results, enhance the overall
understanding of operating results and future prospects, and allow
for greater transparency with respect to key metrics used by
management in its financial and operational decision making.
Constant Currency Basis Revenue Changes: Volcano reports changes
in revenues on a constant currency basis, which is a non-GAAP
financial measure. Volcano believes that investors' understanding
of the company's short-term and long-term financial results is
enhanced by taking into consideration the impact of foreign
currency translation on revenue. In addition,
Volcano's management uses results of operations before currency
translation to evaluate the operational performance of Volcano and
as a basis for strategic planning.
Volcano reports its expectations of earnings per share
performance excluding certain expenses described below; for
additional details, please see the "Reconciliation of GAAP to
non-GAAP EPS Guidance" table in this press release. This
accompanying table has more details on the GAAP financial measures
that are most directly comparable to non-GAAP financial measures
and the related reconciliations between these financial
measures.
Exclusion of Acquisition-Related Expenses: Volcano excludes
acquisition-related expenses because it does not consider these
acquisition-related costs and adjustments to be related to the
continuing organic operations of the acquired businesses and are
generally not relevant to assessing or estimating the long-term
performance of the acquired assets. In addition, the size,
complexity and/or volume of past acquisitions, which often drive
the magnitude of acquisition-related costs, may not be indicative
of the size, complexity and/or volume of future acquisitions.
Exclusion of Amortization of Intangibles: Volcano excludes
amortization of intangibles because it is a non-cash expense
relating primarily to acquisitions. At the time of an acquisition,
the intangible assets of the acquired company, which consist of
technology and supplier agreements, are valued and amortized over
their estimated lives. Volcano believes that since intangible
assets represent efforts of the acquired company to build value
prior to acquisition, Volcano management eliminates the impact of
the amortization when evaluating its current operating
performance.
Exclusion of Non-Cash Interest Expenses: In addition to
disclosing the financial statement impact of the authoritative
guidance for convertible debt accounting, Volcano management
believes that excluding the impact of this authoritative guidance
because it is non-cash in nature, may provide meaningful
supplemental information regarding elements of the company's
borrowing costs in order to properly understand its operational
performance and liquidity, and facilitates comparisons to
competitors' results.
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 revenues, revenue growth, margins, financial
results and foreign currency exchange rates for the first quarter
and calendar year 2014, its growth and other strategies and ability
to execute on these strategies, competitive position, target
markets, development of its base business and pipeline, 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 risk that Volcano's revenues
or other projections may turn out to be inaccurate or Volcano may
encounter unanticipated difficulty in achieve these projections;
global and regional macroeconomic conditions, generally, and in the
medical device and telecom industries 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; uncertainty in
the process of obtaining regulatory approval or clearances for
Volcano's products or devices; the success of Volcano's growth and
other strategies, including the integration of recently-acquired
businesses and our ability to integrate businesses from potential
future acquisitions; risks associated with Volcano's international
operations; timing and achievement of product development
milestones; outcome of ongoing and future litigation,
investigations or claims; the impact and benefits of market
development and the related size of Volcano's addressable markets;
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 and/or
telecom device development and commercialization. These and
additional risks and uncertainties are more fully described in
Volcano's filings made with the Securities and Exchange Commission,
including our 10-Q for the quarter ended September 30, 2013, which should be read in
conjunction with these financial results. 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.
VOLCANO
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
107,159
|
|
$
330,635
|
Short-term
available-for-sale investments
|
231,864
|
|
140,960
|
Accounts
receivable, net
|
81,962
|
|
76,348
|
Inventories
|
60,970
|
|
52,811
|
Prepaid
expenses and other current assets
|
28,079
|
|
21,773
|
Total current
assets
|
510,034
|
|
622,527
|
|
|
|
|
Long-term
available-for-sale investments
|
34,887
|
|
44,385
|
Property and
equipment, net
|
118,094
|
|
104,385
|
Intangible
assets, net
|
58,108
|
|
50,657
|
Goodwill
|
55,087
|
|
51,577
|
Other
non-current assets
|
74,299
|
|
28,813
|
Total
Assets
|
$
850,509
|
|
$
902,344
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
19,137
|
|
$
16,284
|
Accrued
compensation
|
26,918
|
|
23,227
|
Accrued
expenses and other current liabilities
|
29,233
|
|
23,529
|
Deferred
revenues
|
10,652
|
|
9,789
|
Contingent
consideration
|
3,750
|
|
2,908
|
Total current
liabilities
|
89,690
|
|
75,737
|
Convertible
senior notes
|
401,012
|
|
382,300
|
Other long-term
debt
|
1,268
|
|
1,119
|
Deferred
revenues
|
5,079
|
|
4,661
|
Contingent
consideration, non-current portion
|
29,888
|
|
27,323
|
Other
non-current liabilities
|
23,770
|
|
2,859
|
Total
liabilities
|
550,707
|
|
493,999
|
Stockholders'
equity
|
299,802
|
|
408,345
|
Total
Liabilities and Stockholders' Equity
|
$
850,509
|
|
$
902,344
|
VOLCANO
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
$
|
103,290
|
|
$
|
102,477
|
|
$
|
393,678
|
|
$
|
381,866
|
Cost of revenues,
excluding amortization of intangibles
|
|
|
40,679
|
|
|
34,118
|
|
|
143,302
|
|
|
128,915
|
Gross
profit
|
|
|
62,611
|
|
|
68,359
|
|
|
250,376
|
|
|
252,951
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
48,165
|
|
|
45,759
|
|
|
182,950
|
|
|
172,794
|
Research and
development
|
|
|
18,944
|
|
|
14,909
|
|
|
69,159
|
|
|
55,469
|
Amortization of
intangibles
|
|
|
1,344
|
|
|
770
|
|
|
3,832
|
|
|
3,240
|
Acquisition related
items
|
|
|
1,222
|
|
|
1,858
|
|
|
4,964
|
|
|
1,858
|
Restructuring
charges
|
|
|
14,500
|
|
|
-
|
|
|
19,374
|
|
|
-
|
Total operating
expenses
|
|
|
84,175
|
|
|
63,296
|
|
|
280,279
|
|
|
233,361
|
Operating (loss)
income
|
|
|
(21,564)
|
|
|
5,063
|
|
|
(29,903)
|
|
|
19,590
|
Interest
income
|
|
|
317
|
|
|
246
|
|
|
1,287
|
|
|
902
|
Interest
expense
|
|
|
(6,998)
|
|
|
(2,982)
|
|
|
(26,908)
|
|
|
(7,975)
|
Exchange rate
loss
|
|
|
(131)
|
|
|
(257)
|
|
|
(1,156)
|
|
|
(576)
|
Loss from debt
extinguishment
|
|
|
-
|
|
|
(4,969)
|
|
|
-
|
|
|
(4,969)
|
Other, net
|
|
|
1,712
|
|
|
2,749
|
|
|
5,856
|
|
|
2,717
|
(Loss) income before
income tax
|
|
|
(26,664)
|
|
|
(151)
|
|
|
(50,824)
|
|
|
9,689
|
Income tax (benefit)
expense
|
|
|
(6,175)
|
|
|
(2,628)
|
|
|
(16,330)
|
|
|
1,667
|
Net (loss)
income
|
|
$
|
(20,489)
|
|
$
|
2,477
|
|
$
|
(34,494)
|
|
$
|
8,022
|
Net (loss) income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.38)
|
|
$
|
0.05
|
|
$
|
(0.63)
|
|
$
|
0.15
|
Diluted
|
|
$
|
(0.38)
|
|
$
|
0.04
|
|
$
|
(0.63)
|
|
$
|
0.15
|
Shares used in
calculating net (loss) income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
53,901
|
|
|
53,924
|
|
|
54,341
|
|
|
53,475
|
Diluted
|
|
|
53,901
|
|
|
55,371
|
|
|
54,341
|
|
|
55,195
|
VOLCANO
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
Year Ended
December 31,
|
|
2013
|
|
2012
|
Operating
activities
|
|
|
|
|
|
Net (loss)
income
|
$
|
(34,494)
|
|
$
|
8,022
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
26,363
|
|
|
23,503
|
Amortization
(accretion) of investment premium (discount), net
|
|
3,294
|
|
|
3,256
|
Accretion of debt
discount on convertible senior notes and other long-term
debt
|
|
19,026
|
|
|
5,743
|
Loss on debt
extinguishment
|
|
-
|
|
|
4,969
|
Accretion of
contingent consideration
|
|
3,607
|
|
|
231
|
Non-cash stock-based
compensation expense
|
|
16,084
|
|
|
15,079
|
Asset impairment
related to restructuring
|
|
11,402
|
|
|
-
|
Gain on sale of other
long-term investment
|
|
(5,832)
|
|
|
-
|
Effect of exchange
rate changes and others
|
|
13,360
|
|
|
(593)
|
Deferred income
taxes
|
|
(18,558)
|
|
|
(1,009)
|
Changes in operating
assets and liabilities
|
|
(20,738)
|
|
|
(9,383)
|
Net cash provided by
operating activities
|
|
13,514
|
|
|
49,818
|
Investing
activities
|
|
|
|
|
|
Purchase of
short-term and long-term available-for-sale securities
|
|
(374,954)
|
|
|
(298,260)
|
Sale or maturity of
short-term and long-term available-for-sale securities
|
|
290,304
|
|
|
252,937
|
Capital
expenditures
|
|
(31,926)
|
|
|
(43,842)
|
Cash paid for
acquisitions, net of cash acquired
|
|
(14,975)
|
|
|
(54,462)
|
Cash paid for other
intangible assets and investments
|
|
(3,537)
|
|
|
(4,823)
|
Cash paid for other
long-term investments
|
|
(17,936)
|
|
|
(1,001)
|
Proceeds from sale of
long-term investments
|
|
7,333
|
|
|
1,500
|
Proceeds from foreign
currency exchange contracts
|
|
-
|
|
|
1,260
|
Payment for foreign
currency exchange contracts
|
|
-
|
|
|
(525)
|
Net cash used in
investing activities
|
|
(145,691)
|
|
|
(147,216)
|
Financing
activities
|
|
|
|
|
|
Common stock
repurchase
|
|
(100,048)
|
|
|
-
|
Proceeds from
issuance of convertible senior notes
|
|
-
|
|
|
460,000
|
Payment of debt
issuance costs in connection with the convertible senior
notes
|
|
-
|
|
|
(14,611)
|
Purchase of call
options in connection with the convertible senior notes
|
|
-
|
|
|
(89,798)
|
Proceeds from
warrants issuance in connection with the convertible senior
notes
|
|
-
|
|
|
53,686
|
Repurchase of a
portion of 2.875% convertible senior notes due 2015
|
|
-
|
|
|
(104,832)
|
Retirement of call
options in connection with the retirement of a portion of 2.875%
convertible senior notes
|
|
-
|
|
|
15,156
|
Retirement of
warrants in connection with the retirement of a portion of 2.875%
convertible senior notes
|
|
-
|
|
|
(11,603)
|
Proceeds from sale of
common stock under employee stock purchase plan
|
|
3,576
|
|
|
3,880
|
Proceeds from
exercise of common stock options
|
|
6,383
|
|
|
9,933
|
Other
Financing
|
|
(37)
|
|
|
(55)
|
Net cash (used in)
provided by financing activities
|
|
(90,126)
|
|
|
321,756
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(1,173)
|
|
|
(739)
|
Net (decrease)
increase in cash and cash equivalents
|
|
(223,476)
|
|
|
223,619
|
Cash and cash
equivalents, beginning of period
|
|
330,635
|
|
|
107,016
|
Cash and cash
equivalents, end of period
|
$
|
107,159
|
|
$
|
330,635
|
VOLCANO
CORPORATION
|
REVENUE
SUMMARY
|
(in
millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Percentage
Change
|
|
Currency
Impact
|
|
Constant Currency
Percentage Change
|
|
2013
|
|
2012
|
|
2012 to
2013
|
|
Dollar
|
|
Percentage
|
|
Medical
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Consoles:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
6.3
|
|
$
7.1
|
|
(12)%
|
|
$
-
|
|
-%
|
|
(12)%
|
Japan
|
0.8
|
|
1.1
|
|
(31)
|
|
(0.2)
|
|
(17)
|
|
(14)
|
Europe
|
3.2
|
|
2.1
|
|
53
|
|
0.1
|
|
7
|
|
46
|
Rest of
world
|
1.9
|
|
1.9
|
|
2
|
|
-
|
|
-
|
|
2
|
Total
Consoles
|
$
12.2
|
|
$
12.2
|
|
-
|
|
$(0.1)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
IVUS single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
23.0
|
|
$
20.2
|
|
15%
|
|
$
-
|
|
-%
|
|
15%
|
Japan
|
18.9
|
|
25.4
|
|
(26)
|
|
(4.6)
|
|
(19)
|
|
(7)
|
Europe
|
6.3
|
|
5.0
|
|
24
|
|
0.3
|
|
5
|
|
19
|
Rest of
world
|
2.1
|
|
1.6
|
|
28
|
|
-
|
|
-
|
|
28
|
Total IVUS
single-procedure disposables
|
$
50.3
|
|
$
52.2
|
|
(3)
|
|
$(4.3)
|
|
(8)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
FFR single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
15.0
|
|
$
14.4
|
|
4%
|
|
$
-
|
|
-%
|
|
4%
|
Japan
|
4.5
|
|
5.0
|
|
(9)
|
|
(1.1)
|
|
(22)
|
|
13
|
Europe
|
8.7
|
|
7.1
|
|
22
|
|
0.4
|
|
6
|
|
16
|
Rest of
world
|
1.1
|
|
0.7
|
|
47
|
|
-
|
|
-
|
|
47
|
Total FFR
single-procedure disposables
|
$
29.3
|
|
$
27.2
|
|
8
|
|
$(0.7)
|
|
(2)
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
$
9.0
|
|
$
8.4
|
|
7%
|
|
$(0.4)
|
|
(5)%
|
|
12%
|
Sub-total medical
segment
|
$
100.8
|
|
$
100.0
|
|
1
|
|
$(5.5)
|
|
(5)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
segment
|
$
2.5
|
|
$
2.5
|
|
(2)
|
|
-
|
|
-
|
|
(2)
|
Total
|
$
103.3
|
|
$
102.5
|
|
1
|
|
$(5.5)
|
|
(5)
|
|
6
|
VOLCANO
CORPORATION
|
REVENUE
SUMMARY
|
(in
millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Percentage
Change
|
|
Currency
Impact
|
|
Constant Currency
Percentage Change
|
|
2013
|
|
2012
|
|
2012 to
2013
|
|
Dollar
|
|
Percentage
|
|
Medical
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Consoles:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
24.3
|
|
$
24.9
|
|
(2)%
|
|
$
-
|
|
-%
|
|
(2)%
|
Japan
|
2.5
|
|
3.2
|
|
(23)
|
|
(0.5)
|
|
(16)
|
|
(7)
|
Europe
|
9.9
|
|
6.3
|
|
57
|
|
0.3
|
|
5
|
|
52
|
Rest of
world
|
7.0
|
|
6.3
|
|
11
|
|
-
|
|
-
|
|
11
|
Total
Consoles
|
$
43.7
|
|
$
40.7
|
|
7
|
|
$
(0.2)
|
|
(1)
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
IVUS single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
83.6
|
|
$
79.4
|
|
5%
|
|
$
-
|
|
-%
|
|
5%
|
Japan
|
78.8
|
|
99.1
|
|
(20)
|
|
(16.8)
|
|
(17)
|
|
(3)
|
Europe
|
23.7
|
|
20.7
|
|
15
|
|
0.7
|
|
3
|
|
12
|
Rest of
world
|
8.1
|
|
6.7
|
|
21
|
|
-
|
|
-
|
|
21
|
Total IVUS
single-procedure disposables
|
$
194.2
|
|
$
205.9
|
|
(6)
|
|
$(16.1)
|
|
(8)
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
FFR single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
58.0
|
|
$
51.7
|
|
12%
|
|
$
-
|
|
-%
|
|
12%
|
Japan
|
17.7
|
|
13.9
|
|
27
|
|
(3.8)
|
|
(28)
|
|
55
|
Europe
|
32.8
|
|
26.2
|
|
25
|
|
0.9
|
|
3
|
|
22
|
Rest of
world
|
4.1
|
|
3.1
|
|
35
|
|
-
|
|
-
|
|
35
|
Total FFR
single-procedure disposables
|
$
112.6
|
|
$
94.9
|
|
19
|
|
$
(2.9)
|
|
(3)
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
$
34.8
|
|
$
29.7
|
|
17%
|
|
$
(1.4)
|
|
(5)%
|
|
22%
|
Sub-total medical
segment
|
$
385.3
|
|
$
371.2
|
|
4
|
|
$(20.6)
|
|
(5)
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
segment
|
$
8.4
|
|
$
10.7
|
|
(21)
|
|
$
-
|
|
-
|
|
(21)
|
Total
|
$
393.7
|
|
$
381.9
|
|
3
|
|
$(20.6)
|
|
(5)
|
|
8
|
VOLCANO
CORPORATION
|
RECONCILIATION OF
GAAP RESULTS TO NON-GAAP RESULTS
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2013
|
Pre-tax
Adjustments
|
|
Net of Tax
(1)
|
|
Earnings Per
Share
|
|
|
|
|
|
|
GAAP net
loss
|
|
|
$
(20,489)
|
|
$
(0.38)
|
Acquisition
related items
|
1,222
|
|
758
|
|
0.01
|
Amortization of
intangibles
|
1,344
|
|
833
|
|
0.02
|
Non-cash
interest expense on convertible notes
|
4,839
|
|
3,000
|
|
0.06
|
Non-GAAP net
loss
|
$
7,405
|
|
$
(15,898)
|
|
$
(0.29)
|
|
|
|
|
|
|
Weighted
average shares outstanding—basic
|
|
|
|
|
53,901
|
|
|
|
|
|
|
Year Ended
December 31, 2013
|
Pre-tax
Adjustments
|
|
Net of Tax
(1)
|
|
Earnings Per
Share
|
|
|
|
|
|
|
GAAP net
loss
|
|
|
$
(34,494)
|
|
$
(0.63)
|
Acquisition
related items
|
4,964
|
|
3,078
|
|
0.06
|
Amortization of
intangibles
|
3,832
|
|
2,376
|
|
0.04
|
Non-cash
interest expense on convertible notes
|
18,863
|
|
11,695
|
|
0.22
|
Non-GAAP net
loss
|
$
27,659
|
|
$
(17,345)
|
|
$
(0.31)
|
|
|
|
|
|
|
Weighted
average shares outstanding—basic
|
|
|
|
|
54,341
|
|
|
|
|
|
|
(1) Effective tax
rate of 38% applied to non-GAAP adjustments
|
VOLCANO
CORPORATION
|
RECONCILIATION OF
GAAP TO NON-GAAP EPS GUIDANCE
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Q1
2014
|
|
Guidance
Range
|
|
From
|
|
To
|
|
|
|
|
|
|
|
|
GAAP net loss
per share—basic
|
$
(0.20)
|
|
$
(0.21)
|
Acquisition
related items
|
0.01
|
|
0.01
|
Amortization of
intangibles
|
0.02
|
|
0.02
|
Non-cash
interest expense
|
0.06
|
|
0.06
|
Non-GAAP net
loss per share—basic
|
$
(0.11)
|
|
$
(0.12)
|
Weighted
average shares outstanding—basic
|
51,102
|
|
51,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
Guidance
Range
|
|
From
|
|
To
|
|
|
|
|
|
|
|
|
GAAP net loss
per share—basic
|
$
(0.57)
|
|
$
(0.60)
|
Acquisition
related items
|
0.06
|
|
0.06
|
Amortization of
intangibles
|
0.09
|
|
0.09
|
Non-cash
interest expense
|
0.26
|
|
0.26
|
Non-GAAP net
loss per share—basic
|
$
(0.16)
|
|
$
(0.19)
|
Weighted
average shares outstanding—basic
|
51,187
|
|
51,187
|
|
|
|
|
|
|
|
|
Note: Effective tax
rate of 35% applied to non-GAAP adjustments
|
SOURCE Volcano Corporation