Abiomed Inc. (ABMD) reported a net loss of 13 cents per share for the fourth quarter fiscal 2010, marginally higher than the Zacks Consensus Estimate of a loss of 12 cents per share but lower than the year-ago loss of 16 cents. For fiscal 2010, the loss was 46 cents per share, considerably lower than the Zacks Consensus Estimate and the year-ago loss of 66 cents and 61 cents,
respectively.

Quarterly Results

Total revenues in the fourth quarter increased 17% year over year to roughly $23.0 million. Growth was led by higher demand for the company’s Impella products. In the fourth quarter, roughly 545 commercial patients in the U.S. were treated with Abiomed’s Impella products, compared with 261
in the year-ago quarter.

Worldwide, Impella revenues increased 49% year over year to $16.7 million. Non-Impella revenues declined 26% year over year to $6.2 million.

Abiomed reported an expansion in margins in the fourth quarter. Gross margin increased 90 basis points (bps) year over year to 72.8%. Operating margin increased 15.3% year over year to a negative 26.4%.

Fiscal Year Results

Total revenues in fiscal 2010 increased 17% year over year to $85.7 million. Worldwide, Impella revenues increased 59% year over year to $57.8 million.

Balance Sheet

Abiomed ended the fourth quarter with cash, cash equivalents, short and long-term investments of roughly $58.3 million, compared with $51.7 million at the end of the previous quarter.

Outlook

Abiomed has provided revenue guidance for fiscal 2011. The company expects total revenues in the range of $93 to $95 million for fiscal 2011. U.S. Impella revenues are expected to grow between 25 and 30% year over year. Non-Impella revenues are expected to decline by 25% to 30% year over year.

Abiomed is engaged in developing, manufacturing and marketing medical products designed to assist or replace the pumping function of a failing heart. Abiomed’s products are designed to enable the heart to rest, heal and recover.

Presently, we are ‘Neutral’ on Abiomed.

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