Developer of the HeartMate circulatory support device family, Thoratec Corporation has reported its financial results for the first quarter of 2014. International sales of the HeartMate device continue to dominate the revenue line, with 7% growth compared with the equivalent quarter a year ago.
For the quarter ended March 29, 2014, Thoratec reported revenues of $125.7 million, a seven percent increase versus revenues of $117.7 million in the same period a year ago. Of this, $110 million was attributed to the HeartMate product line as the company’s international business continued its upward trajectory.
GAAP gross margin in the first quarter of 2014 was 68.2 percent compared to 70.2 percent in the same quarter last year, the decrease due primarily to inventory-related charges and manufacturing variances, in part offset by favorable product mix.
In addition, GAAP gross margin was positively affected by lower intangible assets amortization expense.
Net income on a GAAP basis was $18.2 million, or $0.32 per diluted share, compared to GAAP net income of $18.2 million, or $0.31 per diluted share, in the same period last year.
In its press release the company reiterates its earlier fiscal 2014 guidance for revenues in a range of $520 million to $535 million and net income per diluted share of $1.28 to $1.38 on a GAAP basis and $1.72 to $1.82 on a non-GAAP basis. Gross margin is expected to be approximately 70 percent on a GAAP basis and 71 percent on a non-GAAP basis.
“Our operational and financial progress in the first quarter provides a solid foundation for a successful 2014,” said Gary F. Burbach, President and Chief Executive Officer. “Performance in the quarter was driven by continued growth in HeartMate II, along with exceptional results in our CentriMag acute product line,” he added.
“We remain excited about upcoming pipeline opportunities with HeartMate III and HeartMate PHP, both of which we anticipate will begin clinical trials in the near future,” Burbach commented. “We continue to expect that our attractive end market opportunity combined with technological innovation will drive strong future growth.”
Source: Thoratec Corporation, PR Newswire