We recently downgraded ATS Medical, Inc. (ATSI) to ‘Underperform’ with a target price of $2.30 based on a P/S of 2.0x our fiscal 2010 revenue estimate of $82 million.
ATS Medical recently reported fourth quarter and fiscal 2009 results. For the fourth quarter, loss per share was 5 cents, higher than the Zacks Consensus Estimate of loss of 1 cent and the year-ago loss of 2 cents. For fiscal 2009, loss per share was 9 cents, compared to the Zacks Consensus Estimate and the year-ago loss per share of 5 cents and 17 cents, respectively.
Total revenues in the fourth quarter increased 3.7% year over year to $18.7 million. Excluding a favorable foreign currency translation (FX), total revenues increased 2.0% year over year.
In terms of business segments, Heart valve therapy revenues increased 6.3% year over year to $13.9 million. Growth was fueled by higher Tissue valve and Heart valve repair revenues, partly offset by lower Mechanical valve revenues. ATS Medical witnessed a decline in its core Mechanical heart valve revenues by 3.4% year over year to $11.3 million.
Tissue valve and Heart valve repair revenues increased 201% and 29.5% year over year to $1.5 million and $1.1 million, respectively.
Surgical arrhythmia revenues increased 2.6% year over year to $4.8 million. Surgical tools & accessories revenues declined 81.3% year over year to $0.064 million.
Total revenues in fiscal 2009 increased 15.0% year over year to $75.7 million. Excluding FX, total revenues increased 17.1% year over year. Minneapolis, Minnesota-based ATS Medical develops, manufactures and markets medical devices needed for cardiovascular surgery. ATS Medical‘s core product, ATS Open Pivot, a mechanical bileaflet heart valve, is used to treat heart valve failure. The company also operates in the tissue valve market.
ATS Medical’s main competitor is St. Jude Medical Inc. (STJ). Other competitors include Medtronic Inc. (MDT), Carbomedics and Edwards Lifesciences (EW).
Read the full analyst report on “ATSI”
Read the full analyst report on “STJ”
Read the full analyst report on “MDT”
Read the full analyst report on “EW”
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