SAN DIEGO, Nov. 8 Volcano Corporation(Nasdaq: VOLC), a leading provider of intravascular ultrasound (IVUS) andfunctional measurement (FM) products designed to enhance the diagnosis andtreatment of vascular and structural heart diseases, today reported resultsfor the third quarter and first nine months of fiscal 2007.
For the quarter ended September 30, 2007, Volcano reported record revenuesof $31.5 million, a 13 percent increase over revenues of $27.8 million in thethird quarter a year ago.
For the third quarter of 2007, the company reported a net loss on a GAAPbasis of $652,000, or $0.02 per share, compared with net income of $501,000,or $0.01 per diluted share, in the same period a year ago. Excludingstock-based compensation expense of $2.0 million, the company reported netincome of $1.3 million, or $0.03 per diluted share. Excluding stock-basedcompensation expense of $809,000, the company reported net income of $1.3million, or $0.04 per diluted share, in the third quarter of 2006. Weightedaverage basic shares outstanding in the quarter were 38.7 million comparedwith 33.0 million in the third quarter of 2006. A reconciliation of thecompany's GAAP to non-GAAP results can be found in today's earnings newsrelease on the company's website at http://www.volcanocorp.com.
Volcano ended the quarter with $92.4 million in cash and cash equivalentsand short-term available-for-sale investments. This balance does not includethe proceeds from the company's stock offering completed on October 23, 2007,which generated proceeds of approximately $123 million, after deductingunderwriting commissions and discounts, but before expenses.
"Our third quarter results represent record revenues for the company andreflect our success at growing sales of our IVUS disposables and expanding ourinstalled base of IVUS consoles. IVUS disposable revenues grew 24 percentglobally and 28 percent in the United States year-over-year. Through the firstthree quarters of 2007, we have placed more IVUS consoles than we did in allof last year. In addition, our year-to-date growth has occurred across all ourgeographies," said Scott Huennekens, president and chief executive officer ofVolcano.
"We believe the growth of our IVUS activity reflects several factors,including the ongoing release of favorable data regarding the value of IVUS instenting procedures. There were a number of presentations at the recentTranscatheter Cardiovascular Therapeutics (TCT) meeting demonstrating thatIVUS can assist interventional cardiologists in providing a more completediagnosis and prevent stent placement-related complications. In addition, theintegration and ease of use provided by our s5 consoles is facilitatingadoption of IVUS within the clinical community," Huennekens continued.
"We are further encouraged by recent comments from stent manufacturerssuggesting that stenting activity is beginning to rebound and data showingthat U.S. PCI volume grew in the third quarter versus the second quarter ofthis year. We believe that we will benefit from these trends," he added.
During the quarter, the company announced a market alliance with PhilipsElectronics Japan to promote Volcano's s5i IVUS system with Philipscardiovascular X-ray equipment. The company also said that it expects to haveregulatory clearance in the United States for its Revolution rotationalcatheter on the s5 with Fractional Flow Reserve (FFR) in January 2008, andexpects to have regulatory approval in Europe later this year. In Japan, thecompany has recently launched the Revolution on its IVG IVUS console.
With respect to clinical trial activities, the company said recenthighlights included:
For the first nine months of fiscal 2007, revenues were $90.6 million, a23 percent increase over revenues of $73.5 million in the same period a yearago. On a GAAP basis, the company reported a net loss of $