ATS Medical, Inc. (ATSI) reported preliminary results for the fourth quarter and full fiscal 2009. The company expects total revenues in the fourth quarter in the range of $18.4 million to $18.8 million, an increase of 2% to 4% over the fourth quarter of 2008.
Full fiscal 2009 revenues are expected between $75.4 million and $75.8 million, an increase of roughly 15% year over year. However, expected annual revenues are lower than ATS Medical’s previous guidance of $77.0 million to $79.0 million. Lower revenue guidance can be primarily attributed to a slowdown in demand for ATS Medical’s mechanical valve business across the globe and lower-than-planned growth for the company’s surgical ablation business in the U.S.
ATS Medical expects to recognize a restructuring charge related to its international organization of roughly $1.0 million to $1.5 million in the fourth quarter of 2009. The company also lowered its operating and net profit guidance.
ATS Medical now expects an operating loss and net loss for both the fourth quarter and full fiscal 2009, compared to the previous guidance of an operating profit for the quarter and year and near breakeven to slightly positive net income for the quarter.
ATS Medical expects preliminary revenue growth of 8% to 10% in fiscal 2010, with the growth skewed more towards the latter half of the year.
Minneapolis, MN-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).
Presently, we have a ‘Neutral’ recommendation on ATS Medical.
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