SonoSite Hosts Corporate Analyst Day
August 11 2009 - 7:39PM
Business Wire
SonoSite, Inc. (Nasdaq:SONO), the world leader and
specialist in hand-carried ultrasound at the point-of-care, today
provided an overview of the company’s technology, corporate growth
initiatives and financial outlook for financial analysts and
investors at the company’s headquarters in Bothell, Washington.
LUMENVU™ CATHETER GUIDANCE SYSTEM
The company showed the LumenVu Catheter Guidance System, a
product in development that provides visualization for the
placement of Peripherally Inserted Central Catheters (PICC) at the
point-of-care utilizing near infrared technology. SonoSite expects
to begin shipping LumenVu systems at the end of 2009 subject to FDA
510(k) clearance. This technology was acquired by the company in
2007. The LumenVu system couples near infrared light with
standardized catheter technology to enable visual tracking of a
catheter tip in real time as it advances through an arm vein to the
superior vena cava. The company plans to integrate its newly
introduced NanoMaxx™ ultrasound tool1 with the LumenVu system to
provide a complete safety and precision guidance solution for PICC
placement. The ultimate goal is to reduce or potentially eliminate
the need for x-ray and/or fluoroscopy to confirm accurate placement
in hospital environments.
Incorrect placement of catheters is relatively common with
bedside placement of PICC lines and reinsertion adds considerable
time and cost. A recent large study showed only 70% were successful
on the first attempt.2 As a result, the company believes that this
technology could offer cost reduction and safety opportunities for
hospitals and other provider environments where PICC lines are
inserted. For more information on the LumenVu system, visit
http://www.sonosite.com/products/lumenvu/.
CARDIOVASCULAR DISEASE MANAGEMENT (CVDM)
The company also previewed its plans for entrance into the
cardiovascular disease management market with the acquisition of
CardioDynamics International. Separately, in a special meeting held
today, shareholders of CardioDynamics voted to approve the
acquisition. SonoSite and CardioDynamics expect the merger to close
in the very near future.
CardioDynamics’ impedance cardiography (ICG) product line
provides non-invasive assessment of cardiac output, peripheral
resistance and contractility, as well as other hemodynamic
parameters in the physician’s office, outpatient clinics and
hospitals.
FINANCIAL OUTLOOK
The company provided an overview of the next two to three years.
The primary themes discussed were the twin objectives of
positioning for a resumption of strong growth but also building in
greater operating leverage to SonoSite’s business model.
The company expects the economic and market environment to
remain challenging for the next four quarters and reiterated its
previous guidance for 2009 issued on July 27, 2009, which excluded
any financial impact from the acquisition of CardioDynamics.
At the meeting today, SonoSite management provided preliminary
objectives for 2010:
- Management is planning an
increase in revenue of up to 5% in its core standalone
business.
- Revenue from its newly formed
cardiovascular disease management business unit is projected to be
a minimum of $25 million.
- Gross margins are expected to be
consistent with those of 2009.
- Aggregate operating margins are
targeted in the range of 11-13%, excluding any non-cash purchase
accounting charges.
Management also discussed its long-term view. Beyond 2010,
revenue and unit growth is expected to resume toward more
normalized levels with a minimum targeted annual growth rate of 10%
accompanied by leveling gross margins, slowing SG&A spending
and continued investments in innovation through R&D. Management
is targeting an expansion in operating margins over the next four
years toward 20% by 2013 and expressed confidence in its ability to
achieve these goals.
About SonoSite
SonoSite, Inc. (www.sonosite.com) is the innovator and world
leader in hand-carried ultrasound. Headquartered near Seattle, the
company is represented by ten subsidiaries and a global
distribution network in over 100 countries. SonoSite’s small,
lightweight systems are expanding the use of ultrasound across the
clinical spectrum by cost-effectively bringing high performance
ultrasound to the point of patient care. The company employs
approximately 700 people worldwide.
Forward-looking Information
and the Private Litigation Reform Act of 1995
Certain statements in this press release relating to expected
shipping dates for new products, the market potential of new
products and initiatives, the expected closing of the
CardioDynamics acquisition, and our future financial position and
operating results are “forward-looking statements” for the purposes
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
the opinions and estimates of our management at the time the
statements are made and are subject to risks and uncertainties that
could cause actual results to differ materially from those expected
or implied by the forward-looking statements. These statements are
not guaranties of future performance, are based on potentially
inaccurate assumptions and are subject to known and unknown risks
and uncertainties, including, without limitation, the risk that our
products are not shipped when expected or do not achieve the levels
of market acceptance we expect, the risk that the acquisition of
CardioDynamics does not close when expected or at all, the risk
that we do not achieve the financial operating results we expect
and the other factors contained in Item 1A. “Risk Factors” section
of our most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission. We caution readers not to place
undue reliance upon these forward-looking statements that speak
only as to the date of this release. We undertake no obligation to
publicly revise any forward-looking statements to reflect new
information, events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events.
1 Availability in the US pending FDA 510(k) clearance.
2 Trerotola, S.O., Thompson, S., Chittams, J., Vierregger, K.S.
Analysis of Tip Malposition and Correction in Peripherally Inserted
Central Catheters Placed at Bedside by a Dedicated Nursing Team. J
Vasc Interv Radiol 2007; 18: 513-518.
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