Leading cardiac assist devices maker Abiomed’s (ABMD) first-quarter fiscal 2012 adjusted (excluding one-time items other than stock-based compensation expenses) net loss per share of 11 cents was higher than the Zacks Consensus Estimate of a loss of 5 cents.
However, on a reported basis, net loss trimmed 23% year over year to $4.6 million (or 12 cents a share) riding on solid revenues from the company’s popular Impella cardiac pumps.
Revenues & Margins
Revenues cruised 25% year over year to $27.4 million, but modestly missed the Zacks Consensus Estimate of $28 million. Sales were boosted by the company’s Impella pumps (including Impella 2.5 and 5.0), which are used for the support of acute pre-shock patients or for prophylactic support of patients undergoing high-risk percutaneous coronary intervention.
Global Impella revenues shot up 33% year over year to $22.2 million. Impella sales in the U.S. and overseas markets jumped 31% and 70%, respectively, in the quarter to $20.5 million and $1.7 million, respectively. Abiomed opened 25 new U.S. Impella 2.5 sites in the first quarter to end the quarter with 546 customer sites.
Gross margin rose to 78.5% from 76% a year-ago on the heels of solid revenues. Operating expenses jumped 13% year over year to $25.8 million, in part, due to continued marketing activities associated with Impella.
Balance Sheet
Abiomed exited the quarter with cash equivalents and short-term marketable securities of $59.1 million, down 2% sequentially, with no debt.
Guidance Backed
The company has reaffirmed its revenue guidance for fiscal 2012 which is still expected in the range of $120 million to $125 million, a 20%-24% year- over- year increase. The current corresponding Zacks Consensus Estimate is $121 million.
Abiomed is enjoying strong demand for its Impella products. Impella utilization continues to grow at a healthy pace as borne out by the increasing number of patients being treated with the device. The company, in April 2011, submitted a regulatory application for the approval of Impella in Japan.
However, Abiomed still remains a loss-making entity and operates in an intensely competitive environment and faces significant reimbursement risk. The company faces competition from organizations developing permanent heart assist products including Thoratec Corporation (THOR). Currently, we have a Neutral recommendation on Abiomed.
