Thoratec 4Q Net Jumps 73% Behind Strong Heart-Pump Sales
February 05 2009 - 5:42PM
Dow Jones News
Thoratec Corp. (THOR) said its fourth-quarter net income surged
73% behind rising sales of its pumping device for patients awaiting
heart transplants, and that it anticipates U.S. regulatory approval
to use that device for people who need permanent help in the first
half of 2010.
Thoratec sales in the quarter topped Wall Street estimates while
annual sales topped the company's most recent guidance. The
Pleasanton, Calif., company issued 2009 guidance with a sales range
mostly beneath Wall Street's forecast, however.
Shares, which are down about 16% on the year after soaring
nearly 79% in 2008, were recently down 1.7% after-hours after
climbing 2.4% to $27.17 during Thursday's regular trading
session.
The so-called "destination therapy" market for Thoratec's
HeartMate II device, in which heart-failure patients who aren't
transplant candidates are treated, is expected to be the product's
biggest market.
Thoratec expects to submit its application with the Food and
Drug Administration for the destination market this May, which is
consistent with a recently bumped-up forecast for a first-half 2009
filing. HeartMate II is approved today for future transplant
patients.
The company posted net-income of $6.4 million, or 11 cents per
share, up from $3.7 million, or 7 cents a share, a year earlier.
Excluding items such as share-based compensation expense, the
company said it earned 16 cents a share versus 11 cents.
Analysts surveyed by Thomson Reuters had forecast, on average,
earnings of 14 cents a share in the recent quarter.
Sales jumped nearly 34% to $85.7 million, topping Wall Street's
forecast by more than $4 million.
Sales of $313.6 million for the year, meantime, topped the range
of $302 million to $308 million Thoratec had projected in October,
when it raised guidance.
Gary F. Burbach, Thoratec's president and chief executive, said
the company continues to see "better than expected adoption" of the
HeartMate II device by new centers.
The adoption rate will cool off in 2009, however, which means
less customer stocking that helps sales, Burbach noted.
Looking ahead, Thoratec forecast 2009 sales of $345 million to
$355 million. Analysts had targeted $353.7 million, on average.
Thoratec expects to post per-share earnings of 41 cents to 47
cents, or 70 cents to 76 cents excluding items. Analysts had
forecast 72 cents.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com