SAN DIEGO, Jan. 13, 2014 /PRNewswire/ -- Volcano Corporation
(Nasdaq: VOLC), a leading developer and manufacturer of precision
guided therapy tools designed to enhance the diagnosis and
treatment of coronary and peripheral vascular disease, said today
that it expects total revenues on a reported basis for the fourth
quarter of 2013 will be approximately $103.3
million, bringing expected full year 2013 revenues on a
reported basis to approximately $393.7 million—in line with most recent
guidance.
Revenues for the fourth quarter of 2013 reflect an increase of
one percent and six percent on a reported basis and constant
currency basis, respectively, compared to the fourth quarter a year
ago. The expected revenues for all of 2013 reflect an increase of
approximately three percent and eight percent on a reported basis
and constant currency basis, respectively, versus revenues for all
of 2012.
Medical segment revenues in the fourth quarter of 2013 increased
approximately one percent on a reported basis and six percent on a
constant currency basis versus the fourth quarter of 2012. For all
of 2013, medical segment revenues increased approximately four
percent and nine percent on a reported and constant currency basis,
respectively, versus revenues in 2012.
"Volcano finished 2013 with a solid fourth quarter, highlighted
by a 15 percent increase in U.S. IVUS (Intravascular Ultrasound)
disposable revenues as we continued to gain increasing penetration
of the peripheral market and experience a very good start with our
PioneerPlus™ Reentry catheter that we acquired in the third
quarter," said Scott Huennekens,
president and chief executive officer. "In addition, we recorded in
excess of 20 percent growth for both our IVUS and FM (Functional
Measurement) disposable revenues in Europe year-over-year," he noted.
"These gains were offset by lower than expected growth in our FM
business in the U.S. and Japan. In
addition, our overall activity in Japan continued to reflect the ongoing
weakness of the yen—which negatively impacted our IVUS and FM
revenues on a reported basis by approximately 25 percent—as well as
declines in PCI activity," Huennekens added.
"As we begin 2014, we are optimistic about the opportunities
available through our market expansion and product development
programs. In addition to our growing presence in the
peripheral market with our IVUS and PioneerPlus offerings, we are
also off to a promising start with the launches of our Crux®
inferior vena cava (IVC) filter and Verrata™ everyday pressure
wire," Huennekens said. "Additionally, we are realizing good
traction in Europe and
Japan with our iFR® (Instant
Wave-Free Ratio) product for which we expect regulatory approval
and commercial launch in the U.S. in the second half of the year,
and are anticipating the launch of our Sync-Rx platform
technology during the first half of 2014," he said.
Guidance
The company also provided updated revenue guidance for 2014. It
now expects revenues will increase year-over-year in the range of
four-to-six percent on a reported basis and six-to-eight percent on
a constant currency basis. This compares to prior guidance for an
increase in revenues of nine-to-11 percent on a reported basis and
eight-to-ten percent on a constant currency basis. The
company said the updated guidance reflects a more moderate view of
global FM market growth and a greater than anticipated decline in
PCI volumes in Japan.
Additionally, updated guidance for as reported revenues reflects an
impact of approximately three hundred basis points from currency
exchange rates versus prior expectations.
The company said it is providing the estimated revenues for 2013
and updated guidance for 2014 revenues in advance of meetings with
the investment community and its presentation at the
32nd Annual J.P. Morgan Healthcare Conference. The
company's presentation will take place at 3:30 p.m., Pacific Standard Time (6:30 p.m., Eastern Standard Time), Wednesday, January 15. A webcast of the
presentation will be available through the conference website at
http://jpmorgan.metameetings.com/confbook/healthcare14/directlink.php?ticker=VOLC
and via the company's website at www.volcanocorp.com.
The company's complete fourth quarter and full year 2013
financial results and guidance for 2014 will be provided in a press
release, as well as a conference call and publicly available
webcast, in late February. Details regarding the date of the
earnings press release, conference call and webcast will be
provided in a subsequent press release.
About Volcano
Volcano Corporation (Nasdaq: VOLC) is revolutionizing the
medical device industry with a broad suite of technologies that
make imaging and therapy simpler, more informative and less
invasive. Our products empower physicians around the world with a
new generation of analytical tools that deliver more meaningful
information—using light and sound as the guiding elements. Founded
in cardiovascular care and expanding into other specialties,
Volcano is changing the assumption about what is possible in
improving patient outcomes by combining imaging and therapy
together. For more information, visit the company's website at
www.volcanocorp.com.
Note Regarding the Use of Non-GAAP Financial Measures
Volcano reports changes in revenues 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 trends 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. Investors should consider
these non-GAAP measures in addition to, and not as a substitute
for, or superior to, financial performance measures prepared in
accordance with U.S. GAAP.
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 and foreign currency
exchange rates for the quarter and year ended December 31, 2013, and the calendar year 2014,
are forward-looking statements involving risks and uncertainties.
These statements reflect estimates based on information available
at this time and are being made prior to the completion of
Volcano's accounting close procedures, including an audit by its
independent accountants, for the year ended December 31, 2013, and could therefore differ
from the actual reported results in Volcano's Form 10-K, which the
company expects to file in February
2014. 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 risk 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; current exchange rate
fluctuations; the effect of competitive factors and the company's
reaction 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; timing and achievement of product development
milestones; outcome of ongoing and future litigation,
investigations and 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 risks inherent to medical and/or
telecom device development and commercialization. These and
additional risks and uncertainties are more fully described in
Volcano's filings made with the Securities and Exchange Commission,
including our 10-Q for the quarter ended September 30, 2013, and other filings made with
the Securities and Exchange Commission, 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
|
REVENUE
SUMMARY
|
(in
millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Percentage
Change
2012 to
2013
|
|
Currency
Impact
|
|
Constant
Currency
Percentage
Change
|
|
2013
|
|
2012
|
|
|
Dollar
|
Percentage
|
|
Medical
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consoles:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
6.3
|
|
$
7.1
|
|
(12)
|
%
|
|
$
-
|
|
-
|
%
|
|
(12)
|
%
|
Japan
|
0.8
|
|
1.1
|
|
(31)
|
|
|
(0.2)
|
|
(17)
|
|
|
(14)
|
|
Europe
|
3.2
|
|
2.1
|
|
53
|
|
|
0.1
|
|
7
|
|
|
46
|
|
Rest of
world
|
1.9
|
|
1.9
|
|
2
|
|
|
-
|
|
-
|
|
|
2
|
|
Total
Consoles
|
$
12.2
|
|
$
12.2
|
|
-
|
|
|
$ (0.1)
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IVUS single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
23.0
|
|
$
20.2
|
|
15
|
%
|
|
$
-
|
|
-
|
%
|
|
15
|
%
|
Japan
|
18.9
|
|
25.4
|
|
(26)
|
|
|
(4.6)
|
|
(19)
|
|
|
(7)
|
|
Europe
|
6.3
|
|
5.0
|
|
24
|
|
|
0.3
|
|
5
|
|
|
19
|
|
Rest of
world
|
2.1
|
|
1.6
|
|
28
|
|
|
-
|
|
-
|
|
|
28
|
|
Total IVUS
single-procedure disposables
|
$
50.3
|
|
$
52.2
|
|
(3)
|
|
|
$ (4.3)
|
|
(8)
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFR single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
15.0
|
|
$
14.4
|
|
4
|
%
|
|
$
-
|
|
-
|
%
|
|
4
|
%
|
Japan
|
4.5
|
|
5.0
|
|
(9)
|
|
|
(1.1)
|
|
(22)
|
|
|
13
|
|
Europe
|
8.7
|
|
7.1
|
|
22
|
|
|
0.4
|
|
6
|
|
|
16
|
|
Rest of
world
|
1.1
|
|
0.7
|
|
47
|
|
|
-
|
|
-
|
|
|
47
|
|
Total FFR
single-procedure disposables
|
$
29.3
|
|
$
27.2
|
|
8
|
|
|
$ (0.7)
|
|
(2)
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
$
9.0
|
|
$
8.4
|
|
7
|
%
|
|
$ (0.4)
|
|
(5)
|
%
|
|
12
|
%
|
Sub-total medical
segment
|
$ 100.8
|
|
$
100.0
|
|
1
|
|
|
$ (5.5)
|
|
(5)
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
segment
|
$
2.5
|
|
$
2.5
|
|
(2)
|
|
|
$
-
|
|
-
|
|
|
(2)
|
%
|
Total
|
$ 103.3
|
|
$
102.5
|
|
1
|
|
|
$ (5.5)
|
|
(5)
|
|
|
6
|
`
|
VOLCANO
CORPORATION
|
REVENUE
SUMMARY
|
(in
millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Percentage
Change
2012 to
2013
|
|
Currency
Impact
|
|
Constant
Currency
Percentage
Change
|
|
2013
|
|
2012
|
|
|
Dollar
|
Percentage
|
|
Medical
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consoles:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
24.3
|
|
$
24.9
|
|
(2)
|
%
|
|
$
-
|
|
-
|
%
|
|
(2)
|
%
|
Japan
|
2.5
|
|
3.2
|
|
(23)
|
|
|
(0.5)
|
|
(16)
|
|
|
(7)
|
|
Europe
|
9.9
|
|
6.3
|
|
57
|
|
|
0.3
|
|
5
|
|
|
52
|
|
Rest of
world
|
7.0
|
|
6.3
|
|
11
|
|
|
-
|
|
-
|
|
|
11
|
|
Total
Consoles
|
$
43.7
|
|
$
40.7
|
|
7
|
|
|
$
(0.2)
|
|
(1)
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IVUS single-procedure
disposables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
83.6
|
|
$
79.4
|
|
5
|
%
|
|
$
-
|
|
-
|
%
|
|
5
|
%
|
Japan
|
78.8
|
|
99.1
|
|
(20)
|
|
|
(16.8)
|
|
(17)
|
|
|
(3)
|
|
Europe
|
23.7
|
|
20.7
|
|
15
|
|
|
0.7
|
|
3
|
|
|
12
|
|
Rest of
world
|
8.1
|
|
6.7
|
|
21
|
|
|
-
|
|
-
|
|
|
21
|
|
Total IVUS
single-procedure disposables
|
$ 194.2
|
|
$
205.9
|
|
(6)
|
|
|
$ (16.1)
|
|
(8)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFR single-procedure
disposables:
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
United
States
|
$
58.0
|
|
$
51.7
|
|
12
|
%
|
|
$
-
|
|
-
|
%
|
|
12
|
%
|
Japan
|
17.7
|
|
13.9
|
|
27
|
|
|
(3.8)
|
|
(28)
|
|
|
55
|
|
Europe
|
32.8
|
|
26.2
|
|
25
|
|
|
0.9
|
|
3
|
|
|
22
|
|
Rest of
world
|
4.1
|
|
3.1
|
|
35
|
|
|
-
|
|
-
|
|
|
35
|
|
Total FFR
single-procedure disposables
|
$ 112.6
|
|
$
94.9
|
|
19
|
|
|
$
(2.9)
|
|
(3)
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
$
34.8
|
|
$
29.7
|
|
17
|
%
|
|
$
(1.4)
|
|
(5)
|
%
|
|
22
|
%
|
Sub-total medical
segment
|
$ 385.3
|
|
$
371.2
|
|
4
|
|
|
$ (20.6)
|
|
(5)
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
segment
|
$
8.4
|
|
$
10.7
|
|
(21)
|
|
|
$
-
|
|
-
|
|
|
(21)
|
%
|
Total
|
$ 393.7
|
|
$
381.9
|
|
3
|
|
|
$ (20.6)
|
|
(5)
|
|
|
8
|
`
|
SOURCE Volcano Corporation