PLYMOUTH, Minn., May 2 ev3 Inc. (Nasdaq: EVVV),a global endovascular device company, today reported financial results for itsfiscal first quarter of 2008 and its revised financial guidance for 2008.
As previously reported, ev3's net sales were $101.3 million in the firstquarter of 2008 representing a 65% increase over the same quarter of the prioryear and a 10% increase over the fourth quarter of 2007. The increase in netsales over the same quarter of the prior year was primarily attributable tothe acquisition of FoxHollow. The sequential quarter increase in net sales wasdriven by growth in the pre-FoxHollow acquisition peripheral vascular businesssegment and the neurovascular business segment. However, first quarter netsales results were negatively impacted by greater than anticipated sales forceintegration challenges related to the FoxHollow acquisition and elevatedcustomer inventory levels of SilverHawk products.
Robert Palmisano, president and chief executive officer of ev3 Inc.,commented, "While we believe that our fundamental strategies are sound, wehave much work ahead of us to improve our execution and efficiency. My toppriority will be to continue expanding our position in the peripheral vascularand neurovascular markets globally by offering a full complement of innovativetherapies, investing in the development of our next generation of products andpursuing a broad clinical trial agenda to bring new products to market andfurther validate the scientific foundation of our endovascular procedures. Ibelieve these initiatives will in turn drive growth and shareholder value."
Palmisano commented further, "In resetting our guidance, we took intoaccount the factors that could affect our business in 2008, including theperformance of our U.S. atherectomy business, which continues to be adverselyaffected by elevated customer inventory levels of SilverHawk, the ability ofour U.S. peripheral vascular sales organization to take advantage of cross-selling opportunities, and the effect of competition and new competitiveentrants into the marketplace. I am confident that this guidance isappropriate for our business and achievable."
ev3's net loss for the first quarter of 2008 increased 3% to $9.8 millioncompared to $9.5 million in the first quarter of 2007. ev3's net loss percommon share was $0.09 for the first quarter of 2008 compared to $0.17 in thefirst quarter of 2007. Total weighted average common shares outstanding usedin the per share calculations were 104.1 million and 57.5 million for thefirst quarter of 2008 and 2007, respectively.
ev3's earnings before interest, taxes, depreciation and amortization(EBITDA), excluding charges for non-cash stock-based compensation, was apositive $6.2 million in the first quarter of 2008, compared to a negative$1.2 million in the first quarter of 2007. ev3 uses the non-GAAP financialmeasure, EBITDA, excluding charges for non-cash stock-based compensation, andcertain other non-GAAP financial measures, as supplemental measures ofperformance and believe that these measures facilitate operating performancecomparisons from period to period and company to company. EBITDA, excludingcharges for non-cash stock-based compensation, for the first quarter of 2008and 2007 are reconciled to ev3's net loss for the respective periodsimmediately following the detail of net sales by geography later in this pressrelease.
Palmisano concluded, "Throughout 2008, we will continue to focus onexpanding our channel to endovascular specialists worldwide, driving globalprocedure penetration and expanding our portfolio of therapy solutions totreat peripheral vascular and neurovascular disease. We also will focus onimproving execution and operational efficiency to drive results for ourcustomers and shareholders. I am confident that we will be able to capitalizeon the market opportunities and work towards bu