Loading...
Loading...
Thoratec
reported its second quarter earnings on Thursday. Shares of the company are down about 30 percent.
Below are some key highlights:
• Thoratec reported revenues of $118.1
million and non-GAAP earnings per diluted share of $0.43 during the second
quarter of 2014.
• We are clearly disappointed with this revenue performance
and our guidance provision.
• At the same time, we remain confident in
the positive outlook for our core market and the HeartMate franchise.
• Furthermore, the FDA recently approved the addition of information on both
the HeartMate II DT post-approval study
• Next, increased surgical preference for less invasive VAD implantation is
impacting growth in our business, particularly outside the U.S. as many
surgeons in Europe have adopted these approaches.
• In addition to the less invasive trend, our field team in Europe has
experienced significant turnover at both the customer facing and leadership
levels.
• Outside of Europe, international revenues were also negatively affected by
the expected reduction of sales in Japan.
• We did realize approximately $1.5 million of HeartMate revenue in Japan
during the quarter, an expected reduction compared with the significant first
quarter stocking activity.
• In the longer term, we continue to believe Japan could become one of the
largest international VAD markets.
• The third primary factor impacting our outlook is the slowdown in growth
among our smaller open heart centers in the U.S.
• In terms of geographic breakdown, we reported revenues of $94.2 million in
the U.S., a decline of 5% compared with the prior year, while international
revenues declined to $23.9 million compared with $31.7 million last year.
• Non-GAAP gross margin for the quarter was 72.4%, compared with 70.4% in the
second quarter of 2013.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in