Net revenues for the fourth quarter increased 32% to
Net product revenues for the fourth quarter of 2008 increased
Fourth-quarter net income was
Net revenues for 2008 were
Adjusted EBITDA for the fourth quarter of 2008 was earnings of
VNUS' balance sheet at
"Our fourth quarter results substantially exceeded our expectations in every aspect of our business," said VNUS President and Chief Executive Officer
VNUS also announced today its business outlook for the first-quarter and full-year 2009.
BUSINESS OUTLOOK First Quarter 2009 Full Year 2009 ------------------ -------------- Millions except EPS Total revenues $22.9 - $24.1 $107.0 - $111.0 Net product revenues $22.0 - $23.0 $102.1 - $105.5 Royalty revenue $0.9 - $1.1 $4.9 - $5.5 Gross margin 68% - 70% 69% - 70% Operating expenses $16.0 - $17.1 $64.0 - $66.0 Effective tax rate 12.0% 12.0% Net income $0.0 - $0.1 $9.5 - $11.6 GAAP EPS $0.0 - $0.01 $0.55 - $0.69 Average shares outstanding 16.8 - 16.9 16.9 - 17.2 Adjusted EBITDA $1.5 - $1.7 $18.2 - $21.2 Fully Taxed EPS $0.0 - $0.0 $0.39 - $0.48
VNUS expects international product revenues to grow at rates higher than overall company rates and expects international revenues to comprise approximately 13-15% of total product revenues during the year. Fluctuations in foreign currency exchange rates may impact the rate of reported US dollar growth of international revenues. VNUS expects that approximately 75% of international revenues in 2009 will be denominated in a foreign currency.
Included in the full year 2009 guidance are operating expense increases over 2008 to sales and marketing between 15% to 18%, research and development between 3% to 5% and general and administrative expenses between 6% to 8%.
VNUS currently estimates an overall increase in 2009 quarterly and full fiscal year operating expenses primarily due to increased sales and marketing expenses associated with increased sales activities, increased field sales headcount and additional marketing related expenditures to support new long term business initiatives in domestic and international markets. VNUS estimates that first quarter and full-year 2009 operating expenses will include patent litigation expenses which will range
TODAY'S TELECONFERENCE
VNUS plans to host its regular quarterly teleconference today at
NON-GAAP FINANCIAL INFORMATION:
VNUS' management evaluates and makes operating decisions using various operating measures, including adjusted earnings before interest, taxes, depreciation and amortization, and non-cash charges for stock-based compensation (Adjusted EBITDA), and Fully Taxed EPS calculated by using income after excluding one-time events, assuming no use of net operating loss carryforwards and fully diluted weighted average number of shares (Fully Taxed EPS). The Company believes that these non-GAAP measures, when presented in conjunction with the comparable GAAP measures, are useful to both management and investors in analyzing the Company's ongoing business and operating performance. The Company believes that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the Company's financial results in the way management views the Company's operating results. Management believes Adjusted EBITDA is useful as a supplemental measure of the performance of the Company's operations because it isolates the Company's operating performance from the accounting impact of the Company's financing strategies, tax provisions, and depreciation and amortization. The Company believes that Fully Taxed EPS is useful as a supplemental disclosure because the Company expects to be in a Fully Taxed EPS position on a GAAP basis during 2010. Accordingly, the Company has decided to provide supplemental disclosure of Fully Taxed EPS as a long term measure of growth in earnings on a comparable constant per share basis absent the utilization of net operating loss carryforwards and one-time events , such as the payment of royalties in the second quarter of 2008 related to periods prior to 2008. VNUS believes Adjusted EBITDA and Fully Taxed EPS should be considered in addition to, but not as a substitute for, items prepared in accordance with GAAP, as the items excluded in the presentation of Adjusted EBITDA and Fully Taxed EPS are significant components in understanding and assessing financial performance. The reconciliation between GAAP and non-GAAP financial information is provided in the financial statements portion of this release.
ABOUT VNUS MEDICAL TECHNOLOGIES, INC.
VNUS is a leading provider of medical devices for the minimally invasive treatment of venous reflux, a progressive condition caused by incompetent vein valves in the leg. VNUS sells the Closure system, which consists of a proprietary radiofrequency (RF) generator and proprietary disposable endovenous catheters and devices to treat diseased veins through the application of temperature-controlled RF energy. For more information, please visit the corporate website at www.vnus.com.
FORWARD-LOOKING STATEMENTS
In addition to statements of historical facts or statements of current conditions, VNUS has made forward-looking statements in this press release. Words such as "expects," "estimates," "believes", "assumes" and "plans" or variations of such words and similar expressions, are intended to identify such forward-looking statements in this press release, including the statements regarding the outlook for VNUS' business, market size, market penetration, and revenue and net income forecasts. Actual results may differ materially from current expectations based on a number of factors affecting VNUS' business, including, among other things, overall economic and market conditions; fluctuating foreign exchange rates; changes in reimbursement levels established by governmental and third-party payors; commercial success of VNUS' licensees; changing competitive market, clinical trial data and regulatory conditions; changes in the credit markets impacting the fair value of our investment securities; continued market acceptance of the ClosureFAST catheter; customer and physician preferences; the ability of VNUS to protect its patent position; and the effectiveness of advertising and other promotional campaigns. The reader is cautioned not to unduly rely on these forward-looking statements. The statements in this press release are made as of the date of this press release, even if subsequently made available by VNUS on its web site or otherwise. VNUS expressly disclaims any intent or obligation to update these forward-looking statements except as required by law.
Additional information concerning these and other risk factors can be found in press releases issued by VNUS and VNUS' periodic public filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K filed with the SEC on
--Financial Statements Attached--
VNUS MEDICAL TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) December December 31, 31, 2008 2007 ASSETS Current assets: Cash and cash equivalents $34,898 $39,269 Short-term investments 40,927 24,067 Accounts receivable, net 12,152 11,456 Inventories 4,506 5,485 Prepaid expenses and other current assets 2,073 1,421 ----- ----- Total current assets 94,556 81,698 Property and equipment, net 4,457 4,354 Long-term investments 9,294 - Other assets 130 130 --- --- Total assets $108,437 $86,182 ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,926 $2,366 Accrued compensation and benefits 8,016 6,040 Other accrued liabilities 1,362 1,571 Deferred revenue, net 826 720 --- --- Total current liabilities 13,130 10,697 Other long term liabilities 1,868 1,996 ----- ----- Total liabilities 14,998 12,693 Commitments and Contingencies Stockholders' equity: Common stock 16 15 Additional paid-in capital 128,284 122,009 Deferred stock compensation - (23) Accumulated other comprehensive income 163 21 Accumulated deficit (35,024) (48,533) ------- ------- Total stockholders' equity 93,439 73,489 ------ ------ Total liabilities and stockholders' equity $108,437 $86,182 ======== ======= VNUS MEDICAL TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Twelve Months Ended December December December December 31, 31, 31, 31, 2008 2007 2008 2007 ---- ---- ---- ---- Net product revenues $25,981 $20,571 $88,283 $70,904 Royalty revenues 1,240 - 12,868 - ----- --- ------ --- Net revenues 27,221 20,571 101,151 70,904 Cost of revenues 8,463 7,041 29,328 25,706 ----- ----- ------ ------ Gross profit 18,758 13,530 71,823 45,198 ------ ------ ------ ------ Operating Expenses: Sales and marketing 7,174 6,876 28,369 25,311 Research and development 2,847 2,276 10,443 9,444 General and administrative 5,018 4,311 19,672 19,340 ----- ----- ------ ------ Total operating expenses 15,039 13,463 58,484 54,095 ------ ------ ------ ------ Income (loss) from operations 3,719 67 13,339 (8,897) Interest and other income, net (3) 882 1,238 3,451 --- --- ----- ----- Income (loss) before provision for taxes 3,716 949 14,577 (5,446) Provision for income taxes 226 41 1,068 78 --- --- ----- --- Net Income (loss) $3,490 $908 $13,509 $(5,524) ====== ==== ======= ======= Basic net income (loss) per share $0.22 $0.06 $0.85 $(0.36) Diluted net income (loss) per share $0.21 $0.05 $0.81 $(0.36) Basic weighted average number of shares 16,048 15,637 15,897 15,390 Diluted weighted average number of shares 16,610 16,973 16,595 15,390 Reconciliation of Income (Loss) from operations to Adusted EBITDA: Income (loss) from operations $3,719 $67 $13,339 $(8,897) Stock-based compensation 1,446 400 5,006 2,010 Depreciation and amortization 390 309 1,504 1,199 --- --- ----- ----- Adjusted EBITDA $5,555 $776 $19,849 $(5,688) ====== ==== ======= ======= Calculation of fully taxed EPS for periods with net income: Income before provision for taxes $3,716 $949 $14,577 Less one time events: Royalty revenue related to periods before 2008 - - (8,699) --- --- ------ Income before taxes 3,716 949 5,878 Less taxes at an assumed 38% rate (1,412) (361) (2,234) ------ ---- ------ Fully taxed income $2,304 $588 $3,644 ====== ==== ====== Divided by diluted weighted average number of shares 16,610 16,973 16,595 ------ ------ ------ Fully taxed EPS for periods with net income $0.14 $0.03 $0.22 ===== ===== =====
SOURCE VNUS Medical Technologies, Inc.