SAN DIEGO, Nov. 6, 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 reported
results for the third quarter and first nine months of 2014.
For the quarter ended September 30,
2014, Volcano reported revenues of $97.5 million versus revenues of $95.8 million in the same period a year ago.
Foreign currency had a negative impact on revenues of approximately
$700,000. Medical segment revenues
increased approximately two and three percent on a reported and
constant currency basis, respectively.
The company reported a net loss on a GAAP basis of $8.0 million, or $0.16 per share, in the third quarter of 2014,
versus a net loss of $8.5 million, or
$0.15 per share, in the same period a
year ago. The results for the third quarter of 2014 included
amortization of intangibles of $2.8
million and restructuring benefits of
$229,000 while the results for the
third quarter of 2013 included amortization of intangibles of
$834,000 and restructuring charges of
$4.6 million. 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 $0.04
per share, compared with a non-GAAP net loss per share of
$0.08 in the third quarter a year
ago.
For the first nine months of 2014, Volcano reported revenues of
$294.6 million versus revenues of
$290.4 million in the first nine
months of 2013. On a constant currency basis, revenues increased
three percent year-over-year after adjusting for a negative impact
of approximately $3.4 million from
foreign currency. Medical segment revenues increased approximately
two and three percent on a reported and constant currency basis,
respectively, versus the first nine months of 2013.
For the first nine months of 2014, the company reported a net
loss on a GAAP basis of $18.6
million, or $0.36 per share,
versus a net loss of $14.0 million,
or $0.26 per share, in the same
period a year ago. The results for the first nine months of 2014
included acquisition-related benefits of $3.8 million, amortization of intangibles of
$6.4 million and restructuring
benefits of $197,000. The results for
the first nine months of 2013 included acquisition-related charges
of $3.7 million, amortization of
intangibles of $2.5 million and
restructuring charges of $4.9
million. 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
$0.14 per share in the first nine
months of 2014, compared with a non-GAAP net loss per share of
$0.03 in the first nine months of
2013.
"We continued to demonstrate strong growth in Europe, where our FFR (Fractional Flow
Reserve) and IVUS (Intravascular Ultrasound) disposable revenues
each increased 24 percent year-over-year," said Scott Huennekens, president and chief executive
officer.
"In addition, our peripheral IVUS business in the U.S. increased
approximately 60 percent, driven by continued adoption of our
peripheral imaging and Pioneer® Re-Entry products. We also
initiated the limited market release of our Phoenix®
Atherectomy System used in the treatment of peripheral artery
disease, which we believe will advance our overall penetration of
the peripheral market. Our growth in these areas helped offset the
continued softness of the U.S. coronary IVUS market," he added.
"At the same time, we are successfully implementing an operating
strategy as we execute a more balanced approach between driving
revenue growth and improving our bottom line performance. As
evidenced by our third quarter results and guidance for the balance
of the year, we have made measurable success in reducing operating
expenses and will be taking additional steps to achieve improved
operating leverage," Huennekens noted.
Guidance
The company provided updated guidance for the full year 2014.
The company expects that based on current foreign currency exchange
rates, FX will have a negative impact of approximately $4.0 million on reported revenues through the
balance of the year. As a result, the company now expects revenues
for 2014 will be in the range of $393.0-$397.0 million. The company expects gross
margins will be 63.0-63.5 percent and that operating expenses,
including restructuring charges, will be 65.0-66.0 percent of
revenues. As a result of continued expense management programs
contributing to lower operating expenses as a percentage of
revenues, the company now expects a two
cent improvement in its loss per share on a GAAP basis, or a
loss per share of $0.50-$0.52. On a
non-GAAP basis, the company expects a loss of $0.16-$0.18 per share. 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 51.6
million.
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
17203481, 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 November ninth, at (404)
537-3406, passcode 17203481, and via the company's website at
http://www.volcanocorp.com.
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.
Notes 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 measure 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 Revenues Changes: Volcano reports
changes 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 revenues. 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
primarily of developed or in-process technology, 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 the 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
is appropriate 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 fourth quarter
and calendar year 2014, its growth, turnaround and other
strategies and ability to execute on these strategies, the
potential Axsun divestiture, competitive position, target markets,
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 revenues 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 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; the
ability to divest Axsun, if at all, and in a timely or beneficial
manner; 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
risk inherent to medical and/or telecom 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, 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)
|
(unaudited)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2014
|
|
2013
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
31,959
|
|
$
107,159
|
Short-term
available-for-sale investments
|
140,894
|
|
230,775
|
Accounts
receivable, net
|
78,755
|
|
81,962
|
Inventories
|
76,342
|
|
60,970
|
Prepaid
expenses and other current assets
|
34,485
|
|
28,525
|
Total current
assets
|
362,435
|
|
509,391
|
|
|
|
|
Long-term
available-for-sale investments
|
44,244
|
|
34,750
|
Property and
equipment, net
|
122,077
|
|
118,094
|
Intangible
assets, net
|
124,807
|
|
58,108
|
Goodwill
|
150,882
|
|
55,087
|
Other
non-current assets
|
60,611
|
|
56,489
|
Total
Assets
|
$
865,056
|
|
$
831,919
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
11,152
|
|
$
19,137
|
Accrued
compensation
|
28,168
|
|
26,918
|
Accrued
expenses and other current liabilities
|
27,060
|
|
28,453
|
Deferred
revenues
|
11,203
|
|
10,652
|
Current
maturities of convertible senior notes
|
23,882
|
|
-
|
Contingent
consideration
|
365
|
|
3,750
|
Total current
liabilities
|
101,830
|
|
88,910
|
Convertible
senior notes
|
392,045
|
|
401,012
|
Deferred
revenues
|
4,797
|
|
5,079
|
Contingent
consideration, non-current portion
|
53,379
|
|
29,888
|
Other
non-current liabilities
|
7,727
|
|
7,228
|
Total
liabilities
|
559,778
|
|
532,117
|
Total
stockholders' equity
|
305,278
|
|
299,802
|
Total
Liabilities and Stockholders' Equity
|
$
865,056
|
|
$
831,919
|
VOLCANO
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Revenues
|
|
$
|
97,457
|
|
|
$
|
95,809
|
|
|
$
|
294,590
|
|
|
$
|
290,384
|
Cost of revenues,
excluding amortization of intangibles
|
|
|
37,292
|
|
|
|
33,458
|
|
|
|
110,086
|
|
|
|
102,624
|
Gross
profit
|
|
|
60,165
|
|
|
|
62,351
|
|
|
|
184,504
|
|
|
|
187,760
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
47,400
|
|
|
|
45,479
|
|
|
|
147,064
|
|
|
|
134,784
|
Research and
development
|
|
|
13,508
|
|
|
|
16,609
|
|
|
|
41,165
|
|
|
|
50,214
|
Amortization of
intangibles
|
|
|
2,804
|
|
|
|
834
|
|
|
|
6,405
|
|
|
|
2,488
|
Acquisition-related
items
|
|
|
1,596
|
|
|
|
1,253
|
|
|
|
(3,809)
|
|
|
|
3,742
|
Restructuring
(benefits) charges
|
|
|
(229)
|
|
|
|
4,616
|
|
|
|
(197)
|
|
|
|
4,874
|
Total operating
expenses
|
|
|
65,079
|
|
|
|
68,791
|
|
|
|
190,628
|
|
|
|
196,102
|
Operating
loss
|
|
|
(4,914)
|
|
|
|
(6,440)
|
|
|
|
(6,124)
|
|
|
|
(8,342)
|
Interest
income
|
|
|
237
|
|
|
|
327
|
|
|
|
833
|
|
|
|
970
|
Interest
expense
|
|
|
(7,370)
|
|
|
|
(6,756)
|
|
|
|
(21,868)
|
|
|
|
(19,908)
|
Exchange rate gain
(loss)
|
|
|
20
|
|
|
|
54
|
|
|
|
91
|
|
|
|
(1,025)
|
Other, net
|
|
|
56
|
|
|
|
(33)
|
|
|
|
180
|
|
|
|
4,144
|
Loss before income
tax
|
|
|
(11,971)
|
|
|
|
(12,848)
|
|
|
|
(26,888)
|
|
|
|
(24,161)
|
Income tax
benefit
|
|
|
(3,971)
|
|
|
|
(4,392)
|
|
|
|
(8,266)
|
|
|
|
(10,156)
|
Net loss
|
|
$
|
(8,000)
|
|
|
$
|
(8,456)
|
|
|
$
|
(18,622)
|
|
|
$
|
(14,005)
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.16)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.26)
|
Diluted
|
|
$
|
(0.16)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.26)
|
Shares used in
calculating net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
51,529
|
|
|
|
54,652
|
|
|
|
51,596
|
|
|
|
54,466
|
Diluted
|
|
|
51,529
|
|
|
|
54,652
|
|
|
|
51,596
|
|
|
|
54,466
|
VOLCANO
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
Nine Months
Ended
September 30,
|
|
2014
|
|
2013
|
Operating
activities
|
|
|
|
|
|
Net loss
|
$
|
(18,622)
|
|
$
|
(14,005)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
24,022
|
|
|
18,677
|
Amortization
(accretion) of investment premium (discount), net
|
|
2,567
|
|
|
2,305
|
Accretion of debt
discount on convertible senior notes and other
liabilities
|
|
15,048
|
|
|
14,148
|
Change in contingent
consideration
|
|
(4,841)
|
|
|
2,537
|
Non-cash stock
compensation expense
|
|
10,721
|
|
|
12,098
|
Asset impairment
related to restructuring
|
|
818
|
|
|
4,616
|
Gain on sale of other
long-term investment
|
|
(365)
|
|
|
(4,153)
|
Effect of exchange
rate changes and others
|
|
682
|
|
|
10,797
|
Deferred income
taxes
|
|
2,211
|
|
|
-
|
Changes in operating
assets and liabilities, net of acquisitions
|
|
(37,851)
|
|
|
(37,979)
|
Net cash (used in)
provided by operating activities
|
|
(5,610)
|
|
|
9,041
|
Investing
activities
|
|
|
|
|
|
Purchase of
short-term and long-term available-for-sale securities
|
|
(161,882)
|
|
|
(342,715)
|
Sale or maturity of
short-term and long-term available-for-sale securities
|
|
239,499
|
|
|
247,790
|
Cash paid related to
acquisitions, net of cash acquired
|
|
(114,791)
|
|
|
(15,000)
|
Capital
expenditures
|
|
(22,854)
|
|
|
(26,533)
|
Cash paid for
intangible assets and other investments
|
|
(4,987)
|
|
|
(2,377)
|
Proceeds from sale of
other long-term investments
|
|
665
|
|
|
5,654
|
Net cash used in
investing activities
|
|
(64,350)
|
|
|
(133,181)
|
Financing
activities
|
|
|
|
|
|
Repayment of capital
lease and other liabilities
|
|
(179)
|
|
|
(22)
|
Cash paid for
contingent liability related to acquisitions
|
|
(16,900)
|
|
|
-
|
Proceeds from sale of
common stock under employee stock purchase plan
|
|
3,140
|
|
|
3,576
|
Proceeds from
exercise of common stock options
|
|
9,523
|
|
|
2,203
|
Net cash (used in)
provided by financing activities
|
|
(4,416)
|
|
|
5,757
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(824)
|
|
|
(846)
|
Net decrease in cash
and cash equivalents
|
|
(75,200)
|
|
|
(119,229)
|
Cash and cash
equivalents, beginning of period
|
|
107,159
|
|
|
330,635
|
Cash and cash
equivalents, end of period
|
$
|
31,959
|
|
$
|
211,406
|
VOLCANO
CORPORATION
|
REVENUE
SUMMARY
|
(in
millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Percentage
Change
|
|
Currency
Impact
|
|
Constant
Currency
Percentage
Change
|
|
2014
|
|
2013
|
|
2013 to
2014
|
|
Dollar
|
Percentage
|
|
Medical
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Consoles:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$ 6.7
|
|
$ 6.3
|
|
5%
|
|
$ -
|
|
-%
|
|
5%
|
Japan
|
0.2
|
|
0.6
|
|
(59)
|
|
-
|
|
(2)
|
|
(57)
|
Europe
|
1.7
|
|
2.5
|
|
(29)
|
|
-
|
|
1
|
|
(30)
|
Rest of
world
|
0.9
|
|
1.6
|
|
(45)
|
|
-
|
|
-
|
|
(45)
|
Total
Consoles
|
$ 9.5
|
|
$11.0
|
|
(13)
|
|
$ -
|
|
-
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
IVUS single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$22.2
|
|
$20.4
|
|
9%
|
|
$ -
|
|
-%
|
|
9%
|
Japan
|
14.2
|
|
18.7
|
|
(24)
|
|
(0.6)
|
|
(3)
|
|
(21)
|
Europe
|
6.6
|
|
5.3
|
|
24
|
|
0.1
|
|
1
|
|
23
|
Rest of
world
|
1.9
|
|
1.6
|
|
21
|
|
-
|
|
-
|
|
21
|
Total IVUS
single-procedure disposables
|
$44.9
|
|
$46.0
|
|
(2)
|
|
$(0.5)
|
|
(1)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
FFR single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$14.6
|
|
$14.3
|
|
2%
|
|
$ -
|
|
-%
|
|
2%
|
Japan
|
5.3
|
|
4.3
|
|
23
|
|
(0.2)
|
|
(5)
|
|
28
|
Europe
|
10.3
|
|
8.3
|
|
24
|
|
0.1
|
|
1
|
|
23
|
Rest of
world
|
1.4
|
|
1.0
|
|
40
|
|
-
|
|
-
|
|
40
|
Total FFR
single-procedure disposables
|
$31.6
|
|
$27.9
|
|
13
|
|
$(0.1)
|
|
-
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
$ 9.7
|
|
$ 8.8
|
|
9%
|
|
$(0.1)
|
|
(1)%
|
|
10%
|
Sub-total medical
segment
|
$95.7
|
|
$93.7
|
|
2
|
|
$(0.7)
|
|
(1)
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
segment
|
$ 1.8
|
|
$ 2.1
|
|
(14)
|
|
$ -
|
|
-
|
|
(14)
|
Total
|
$97.5
|
|
$95.8
|
|
2
|
|
$(0.7)
|
|
-
|
|
2
|
VOLCANO
CORPORATION
|
REVENUE
SUMMARY
|
(in
millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
Percentage
Change
|
|
Currency
Impact
|
|
Constant
Currency
Percentage Change
|
|
2014
|
|
2013
|
|
2013 to
2014
|
|
Dollar
|
Percentage
|
|
Medical
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Consoles:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$ 16.0
|
|
$ 18.0
|
|
(12)%
|
|
$ -
|
|
-%
|
|
(12)%
|
Japan
|
1.4
|
|
1.7
|
|
(18)
|
|
(0.1)
|
|
(8)
|
|
(10)
|
Europe
|
7.3
|
|
6.7
|
|
8
|
|
0.3
|
|
4
|
|
4
|
Rest of
world
|
3.6
|
|
5.1
|
|
(29)
|
|
-
|
|
-
|
|
(29)
|
Total
Consoles
|
$ 28.3
|
|
$ 31.5
|
|
(11)
|
|
$ 0.2
|
|
-
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
IVUS single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$ 65.9
|
|
$ 60.4
|
|
9%
|
|
$ -
|
|
-%
|
|
9%
|
Japan
|
46.4
|
|
60.0
|
|
(23)
|
|
(3.8)
|
|
(7)
|
|
(16)
|
Europe
|
20.0
|
|
17.5
|
|
15
|
|
0.7
|
|
4
|
|
11
|
Rest of
world
|
7.5
|
|
6.0
|
|
26
|
|
-
|
|
-
|
|
26
|
Total IVUS
single-procedure disposables
|
$139.8
|
|
$143.9
|
|
(3)
|
|
$(3.1)
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
FFR single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$ 43.5
|
|
$ 43.0
|
|
1%
|
|
$ -
|
|
-%
|
|
1%
|
Japan
|
15.2
|
|
13.2
|
|
15
|
|
(1.1)
|
|
(9)
|
|
24
|
Europe
|
30.3
|
|
24.1
|
|
26
|
|
1.0
|
|
5
|
|
21
|
Rest of
world
|
3.4
|
|
3.0
|
|
13
|
|
-
|
|
-
|
|
13
|
Total FFR
single-procedure disposables
|
$ 92.4
|
|
$ 83.3
|
|
11
|
|
$(0.1)
|
|
-
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
$ 28.9
|
|
$ 25.7
|
|
12%
|
|
$(0.4)
|
|
(1)%
|
|
13%
|
Sub-total medical
segment
|
$289.4
|
|
$284.4
|
|
2
|
|
$(3.4)
|
|
(1)
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
segment
|
$ 5.2
|
|
$ 6.0
|
|
(13)
|
|
$(0.0)
|
|
-
|
|
(13)
|
Total
|
$ 294.6
|
|
$ 290.4
|
|
1
|
|
$(3.4)
|
|
(2)
|
|
3
|
VOLCANO
CORPORATION
|
RECONCILIATION OF
GAAP RESULTS TO NON-GAAP RESULTS
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2014
|
Pre-tax
Adjustments
|
|
Net of Tax
(1)
|
|
Earnings
(Loss) Per
Share
|
|
|
|
|
|
|
GAAP net
loss
|
|
|
$
(8,000)
|
|
$ (0.16)
|
Acquisition
related items
|
1,596
|
|
1,037
|
|
0.02
|
Amortization of
intangibles
|
2,804
|
|
1,823
|
|
0.04
|
Non-cash
interest expense on convertible notes
|
5,099
|
|
3,314
|
|
0.06
|
Non-GAAP net
loss
|
$
9,499
|
|
$
(1,826)
|
|
$ (0.04)
|
|
|
|
|
|
|
Weighted
average shares outstanding—basic
|
|
|
|
|
51,529
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2014
|
Pre-tax
Adjustments
|
|
Net of Tax
(1)
|
|
Earnings
(Loss) Per
Share
|
|
|
|
|
|
|
GAAP net
loss
|
|
|
$
(18,622)
|
|
$ (0.36)
|
Acquisition
related items
|
(3,809)
|
|
(2,476)
|
|
(0.05)
|
Amortization of
intangibles
|
6,405
|
|
4,163
|
|
0.08
|
Non-cash
interest expense on convertible notes
|
15,033
|
|
9,771
|
|
0.19
|
Non-GAAP net
loss
|
$ 17,629
|
|
$
(7,164)
|
|
$ (0.14)
|
|
|
|
|
|
|
Weighted
average shares outstanding—basic
|
|
|
|
|
51,596
|
|
|
|
|
|
|
(1) Effective tax
rate of 35% applied to non-GAAP adjustments
|
VOLCANO
CORPORATION
|
RECONCILIATION OF
GAAP TO NON-GAAP GUIDANCE
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Q4
2014
|
|
Guidance
Range
|
|
From
|
|
To
|
|
|
|
|
|
|
|
|
GAAP net loss
per share—basic
|
$ (0.15)
|
|
$ (0.17)
|
Acquisition
related items
|
0.02
|
|
0.02
|
Amortization of
intangibles
|
0.03
|
|
0.03
|
Non-cash
interest expense
|
0.07
|
|
0.07
|
Non-GAAP net
loss per share—basic
|
$ (0.03)
|
|
$ (0.05)
|
Weighted
average shares outstanding—basic
|
51,600
|
|
51,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
Guidance
Range
|
|
From
|
|
To
|
|
|
|
|
|
|
|
|
GAAP net loss
per share—basic
|
$ (0.50)
|
|
$ (0.52)
|
Acquisition
related items
|
(0.03)
|
|
(0.03)
|
Amortization of
intangibles
|
0.12
|
|
0.12
|
Non-cash
interest expense
|
0.25
|
|
0.25
|
Non-GAAP net
loss per share—basic
|
$ (0.16)
|
|
$ (0.18)
|
Weighted
average shares outstanding—basic
|
51,600
|
|
51,600
|
|
|
|
|
|
|
|
|
Note: Effective tax
rate of 35% applied to non-GAAP adjustments
|
SOURCE Volcano Corporation