AtriCure,
Inc. (Nasdaq:
ATRC), a leading innovator in treatments for atrial fibrillation
(Afib) and left atrial appendage (LAA) management, today announced
second quarter 2018 financial results.
“Our second quarter results reflect strong revenue growth, solid
operational performance and continued execution on our strategic
priorities,” said Mike Carrel, President and Chief Executive Officer
of AtriCure. “We are pleased to be reporting positive adjusted EBITDA
for the second quarter as well as raising our revenue expectations for
the year.”
Second Quarter 2018 Financial Results
Revenue for the second quarter of 2018 was $51.8 million, an increase of
$6.6 million or 14.5% (13.5% on a constant currency basis), compared to
second quarter 2017 revenue. U.S. revenue increased 14.9% to $40.8
million, driven by increased sales of ablation-related open-heart
products and appendage management products. International revenue was
$11.0 million, an increase of $1.3 million or 13.1% (8.3% on a constant
currency basis), compared to second quarter 2017 revenue, driven
primarily by increased sales in Asia and certain European markets.
Gross profit for the second quarter of 2018 was $38.1 million compared
to $32.6 million for the second quarter of 2017. Gross margin for the
second quarter of 2018 increased to 73.5% compared to 72.0% in the
second quarter of 2017, driven primarily by product mix.
Operating expenses for the second quarter of 2018 decreased 4.6%, or
$1.8 million, compared to the second quarter of 2017. The decrease in
operating expenses was primarily due to a contingent consideration
adjustment of $5.9 million recorded in the second quarter of 2018.
Income from operations for the second quarter of 2018 was $1.0 million,
compared to a loss of $6.4 million for the second quarter of 2017. Net
loss per share was $0.01 for the second quarter of 2018 compared to
$0.21 for the second quarter of 2017. The adjusted loss per share for
the second quarter of 2018, which excludes the contingent consideration
adjustment, was $0.19.
Adjusted EBITDA, a non-GAAP measure, was positive $0.8 million for the
second quarter of 2018 and a loss of $0.4 million for the second quarter
of 2017 (see reconciliation of GAAP results to non-GAAP results in the
table accompanying this release).
2018 Financial Guidance
Management is raising its 2018 revenue guidance. Revenue for 2018 is
projected to be approximately $193 million to $197 million. Management
continues to expect positive full-year adjusted EBITDA, a non-GAAP
measure, with legal fees continuing to be a watch item.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time on
Wednesday, August 1, 2018 to discuss its second quarter 2018 financial
results. The call may be accessed through an operator by calling (844)
884-9951 for domestic callers and (661) 378-9661 for international
callers using conference ID number 1519128. A live audio webcast of the
presentation may be accessed by visiting the Investors page of
AtriCure’s corporate website at ir.atricure.com.
A replay of the presentation will be available for 90 days following the
presentation.
About AtriCure
AtriCure, Inc. provides innovative technologies for the treatment of
Afib and related conditions. Afib affects more than 33 million people
worldwide. Electrophysiologists and cardiothoracic surgeons around the
globe use AtriCure technologies for the treatment of Afib and reduction
of Afib related complications. AtriCure’s Isolator® Synergy™ Ablation
System is the first and only medical device to receive FDA approval for
the treatment of persistent Afib. AtriCure’s AtriClip Left Atrial
Appendage Exclusion System products are the most widely sold LAA
management devices worldwide, with more than 150,000 implanted to date.
For more information, visit AtriCure.com
or follow us on Twitter @AtriCure.
Forward-Looking Statements
This press release contains “forward-looking statements”– that is,
statements related to future events that by their nature address matters
that are uncertain. For details on the uncertainties that may cause our
actual results to be materially different than those expressed in our
forward-looking statements, visit http://www.atricure.com/fls
as well as our Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q which contain risk factors. We do not undertake to update our
forward-looking statements. This document also includes forward-looking
projected financial information that is based on current estimates and
forecasts. Actual results could differ materially.
Use of Non-GAAP Financial Measures
To supplement AtriCure’s condensed consolidated financial statements
prepared in accordance with accounting principles generally accepted in
the United States of America, or GAAP, AtriCure uses certain non-GAAP
financial measures in this release as supplemental financial metrics.
Revenue reported on a constant currency basis is a non-GAAP measure and
is calculated by applying previous period foreign currency exchange
rates to each of the comparable periods. Management analyzes revenue on
a constant currency basis to better measure the comparability of results
between periods. Because changes in foreign currency exchange rates have
a non-operating impact on revenue, the Company believes that evaluating
growth in revenue on a constant currency basis provides an additional
and meaningful assessment of revenue to both management and the
company’s investors.
Adjusted EBITDA provides an indication of performance excluding certain
items. Management believes that in order to properly understand
short-term and long-term financial trends, investors may wish to
consider the impact of these excluded items in addition to GAAP
measures. The excluded items vary in frequency and/or impact on our
continuing operations and management believes that the excluded items
are typically not reflective of our ongoing core business operations.
Further, management uses adjusted EBITDA for its strategic planning. A
reconciliation of adjusted EBITDA reported in this release to the most
comparable GAAP measure for the respective periods can be found in a
table later in this release.
Adjusted loss per share is a non-GAAP measure which calculates the net
loss per share before non-cash adjustments to expenses related to the
adjustment in value of the contingent consideration liability.
Management believes this metric provides a better measure of
comparability of results between periods, as such adjustments are not
frequent in nature or similar in value, and can be significant.
The non-GAAP financial measures used by AtriCure may not be the same or
calculated the same as those used by other companies. Non-GAAP financial
measures have limitations as analytical tools and should not be
considered in isolation or as a substitute for AtriCure’s financial
results prepared and reported in accordance with GAAP.
operating activities:
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