Atrial Fibrillation device specialist AtriCure, Inc. has announced fourth quarter and full year 2013 financial results showing 16 percent revenue growth for the year.
Revenue of $21.9 million represented an increase of $3.5 million or 19.2% (18.4% on a constant currency basis) compared to Q4 2012.
Domestic revenue increased 20.0% to $16.4 million, driven by strong sales of ablation-related open-heart products and AtriClip products. International revenue was $5.5 million, an increase of $0.8 million or 16.6% (13.7% on a constant currency basis) when compared to $4.7 million for the fourth quarter of 2012. International revenue growth was driven primarily by an increase in product sales in Europe and Asia.
Gross profit for Q4 2013 was $15.7 million compared to $13.0 million for Q4 2012. Gross margin for the fourth quarter of 2013 and 2012 was 71.6% and 70.8%, respectively. The company says this increase was due primarily to volume-driven leverage of manufacturing overhead expenses, a higher mix of domestic sales and the strong performance of the AtriClip Pro product.
Operating expenses for Q4 2013 increased 38.1%, or $5.7 million, compared to the fourth quarter of 2012. The increase in operating expenses was driven primarily by an increase in selling, marketing and training expenses, along with the addition of $1.2 million of expenses related to the acquisition of Estech.
Loss from operations was $4.8 million compared to $1.9 million for Q4 2012.
Revenue for 2013 was $81.9 million, an increase of $11.6 million or 16.6% (16.1% on a constant currency basis), compared to 2012.
Domestic revenue increased 18.4% to $62.3 million, driven by strong sales of ablation-related open-heart products and AtriClip products.
International revenue was $19.6 million, an increase of $2.0 million or 11.0% (9.1% on a constant currency basis) when compared to $17.6 million for 2012. International revenue growth was driven primarily by an increase in product sales in Europe and Asia.
Gross profit for 2013 was $59.6 million compared to $50.0 million for 2012. Gross margin for 2013 was 72.7% compared to 71.2% for 2012. The increase in gross margin was primarily due to volume-driven leverage of manufacturing overhead expenses, a higher mix of domestic sales, lower sales of capital equipment and the strong performance of the company’s AtriClip Pro product.
Loss from operations for 2013 was $10.9 million as compared to $7.2 million for 2012. Adjusted EBITDA, a non-GAAP measure, was a loss of $5.8 million for 2013 as compared to a loss of $1.8 million for 2012.
Management projects that 2014 revenue will be in the range of $100 million to $103 million, which represents an increase of 22% to 26% over 2013. Organic revenue growth is expected to be approximately 13% to 15% with the remaining portion expected from the recently acquired Estech ablation and valve products. AtriCure estimates that Estech’s valve products, which are distinct from the core ablation franchise, will generate revenue of approximately $3 million for the year.
Adjusted EBITDA, a non-GAAP measure, is projected to be a loss in the range of $9 million to $10 million for 2014, of which approximately $3.5 million of expense will be related to the Estech transaction. AtriCure expects the Estech transaction to be dilutive to earnings in 2014 and accretive in 2015 and beyond.
“We are pleased with our team’s performance in 2013 and momentum as we move into 2014. Our commitment to training and education, clinical trial support and innovation, coupled with our strategic acquisition of Estech, position AtriCure to execute our strategy. We are emerging as the leader in atrial fibrillation and are striving to expand the Afib market through improved patient outcomes and results,” said Mike Carrel, President and Chief Executive Officer of AtriCure. “We recently completed a successful financing which brought approximately $66 million in net proceeds to the company, bolstering our capital resources to fund our clinical programs and growth objectives.”
Source: AtriCure, Inc., Business Wire