Abiomed Announces Q4 FY 2017 Revenue of $124.7 Million, Up 33% Over Prior Year and Total Year Revenue of $445.3 Million, Up 35% Over Prior Year

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| Source: Abiomed

DANVERS, Mass., May 04, 2017 (GLOBE NEWSWIRE) -- Abiomed, Inc. (NASDAQ:ABMD), a leading provider of breakthrough heart support technologies, today reported fourth quarter fiscal 2017 revenue of $124.7 million, an increase of 33% compared to revenue of $94.0 million for the same period of fiscal 2016.  For fiscal year 2017, total revenue was $445.3 million, up 35% compared to revenue of $329.5 million in fiscal year 2016.

Fourth quarter fiscal 2017 GAAP net income was $14.9 million or $0.33 per diluted share, impacted by $3.1 million or $0.07 per diluted share of one-time items, described below. For the full fiscal year, GAAP net income was $52.1 million or $1.17 per diluted share.

Financial and operating highlights during the fourth quarter of fiscal 2017 include:

  • Fiscal fourth quarter worldwide Impella® heart pump revenue totaled $118.9 million, an increase of 34% compared to revenue of $88.6 million during the same period of the prior fiscal year. Full year worldwide Impella revenue totaled $423.7 million, up 37% compared to $310.1 million for fiscal 2016.

  • U.S. Impella heart pump revenue for the quarter grew 32% to $108.2 million from $81.8 million in the prior fiscal year with U.S. patient usage of the Impella heart pumps up 30%.  Full year U.S. Impella revenue totaled $387.5 million, up 35% compared to $287.2 million in the prior fiscal year.
                 
  • The installed base for Impella 2.5® heart pumps in the U.S. grew by an additional 19 hospitals, which made initial purchases of Impella heart pumps, bringing the installed customer base to 1,138 sites. The installed customer base for Impella CP® heart pumps grew by 44 new U.S. hospitals, bringing the total number of Impella CP sites to 1,016. The installed customer base for Impella 5.0® heart pumps grew by 11 new U.S. hospitals, bringing the total number of Impella 5.0 sites to 453.

  • An additional 7 sites made initial purchases of Impella RP® heart pumps during the quarter, bringing the total number of sites to 127.

  • Gross margin for fiscal fourth quarter 2017 was 84.6% compared to 84.4% in the fourth quarter of fiscal 2016.  For the full fiscal year, gross margin was 84.1% compared to 84.7% in the prior year.
                 
  • Operating income for the fourth quarter of fiscal 2017 was $29.0 million, or 23.3% operating margin, compared to $19.8 million, or 21.1% operating margin in the prior year period. For the full fiscal year, operating income was $90.1 million, or 20.2% of revenue, compared to $65.1 million, or 19.8% of revenue in the prior year.

  • The Company generated $18.2 million in cash, cash equivalents and marketable securities in the fourth quarter of fiscal 2017, bringing the total to $277.1 million as of March 31, 2017. The Company currently has no debt.
                 
  • Fourth quarter fiscal 2017 GAAP net income was $14.9 million or $0.33 per diluted share and full fiscal year GAAP net income was $52.1 million or $1.17 per diluted share. This compares to GAAP net income for the fourth quarter of fiscal 2016 of $11.0 million or $0.24 per diluted share and full fiscal year GAAP net income of $38.1 million or $0.85 per diluted share.  During the fourth quarter of fiscal 2017, the Company recorded a non-recurring income tax charge of $3.1 million, or $0.07 per diluted share, related to uncertainty about the utilization of research and development tax credits.
                 
  • Beginning in the first quarter of fiscal 2018, the Company will adopt a new accounting standard entitled "Improvements to Employee Share-Based Payment Accounting". Under this new standard, excess tax benefits and deficiencies associated with employee share-based payments will no longer be recognized as additional paid-in capital on the balance sheet, but instead will be recognized directly to income tax expense or benefit in the income statement for the reporting period in which they occur. The adoption of the new accounting standard is likely to introduce positive fluctuations to net income, our tax provision and earnings per share this year, but will not impact Abiomed’s operating income or cash tax paid.

  • On February 23, 2017, Abiomed announced that it has supported more than 50,000 patients in the U.S. with its Impella® heart pumps.
                 
  • On March 19, 2017 at the American College of Cardiology (ACC) 66th Annual Scientific Session in Washington, D.C, Abiomed announced and presented data from the Impella® Quality (IQ) Assurance Program, which includes the IQ Database and cVAD RegistryTM. The Abiomed IQ Assurance Program is a real-world collection of clinical information derived from the treatment of patients with Impella devices since 2008. Trends in the observational IQ Database, combined with information from Abiomed's Institutional Review Board (IRB)-approved cVAD Registry have helped identify best practices and protocols that are associated with improved survival and native heart recovery in hospitals using Impella devices. The data presented also included new data from the Detroit Cardiogenic Shock Initiative (DCSI), which is an unprecedented collaboration between five heart hospitals in Detroit focused on systematic best practices to increase cardiogenic shock survival rates.
                 
  • On March 30, 2017, Abiomed announced the Grand Opening of Newly-Expanded manufacturing and training space at Danvers, Massachusetts headquarters.

  • Today, Abiomed announced in a separate press release, the first patient enrolled in the STEMI Door to Unloading (DTU) feasibility study.

“Abiomed remains one of the fastest growing GAAP profitable companies and fiscal 2017 was another successful year as we achieved our corporate goals with two FDA approvals, approval in Japan, and dedicated DRGs from the Centers for Medicare and Medicaid Services (CMS),” said Michael R. Minogue, Chairman, President and Chief Executive Officer, Abiomed. “We want to thank our shareholders for their support and all of our employees and customers for their hard work and dedication to patients and our mission of heart recovery.”

FISCAL YEAR 2018 OUTLOOK
The Company is giving its fiscal year 2018 guidance for total revenues to be in the range of $555 million to $575 million, an increase of 25% - 29% over the prior year. The Company is also giving its fiscal year 2018 guidance for GAAP operating margin to be in the range of 22% to 24%.

EARNINGS CONFERENCE CALL DETAILS
The Company will host a conference call to discuss the results at 8 a.m. ET on Thursday, May 4, 2017. The conference call releasing full quarterly results will be hosted by Michael R. Minogue, Chairman, President and Chief Executive Officer and Michael Tomsicek, Vice President and Chief Financial Officer.

To listen to the call live, please tune into the webcast via http://investor.abiomed.com or dial (855) 212-2361; the international number is (678) 809-1538.  A replay of this conference call will be available beginning at 11 a.m. EDT May 4, 2017 through 11:00 a.m. EDT on May 7, 2017. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 3991529.

The ABIOMED logo, ABIOMED, Impella, Impella 2.5, Impella CP, Impella 5.0, Impella RP, and Recovering Hearts. Saving Lives. are registered trademarks of ABIOMED, Inc. in the U.S. and in certain foreign countries. cVAD Registry is a trademark of ABIOMED, Inc.

ABOUT ABIOMED 
Based in Danvers, Massachusetts, Abiomed, Inc. is a leading provider of medical devices that provide circulatory support.  Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information, please visit: www.abiomed.com

FORWARD-LOOKING STATEMENTS 
This release contains forward-looking statements, including statements regarding development of Abiomed's existing and new products, the Company's progress toward commercial growth, and future opportunities and expected regulatory approvals. The Company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including uncertainties associated with development, testing and related regulatory approvals, including the potential for future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, competition, technological change, government regulation, litigation matters, future capital needs and uncertainty of additional financing, and other risks and challenges detailed in the Company's filings with the Securities and Exchange Commission, including the most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this release or to reflect the occurrence of unanticipated events.

 

Abiomed, Inc. and Subsidiaries 
Consolidated Balance Sheets 
(Unaudited) 
(in thousands, except share data) 
      
  March 31, 2017 March 31, 2016 
      
ASSETS     
Current assets:     
Cash and cash equivalents $  39,040  $  48,231  
Short-term marketable securities    190,908     163,822  
Accounts receivable, net     54,055     42,821  
Inventories     34,931     26,740  
Prepaid expenses and other current assets    8,024     6,778  
Total current assets    326,958     288,392  
Long-term marketable securities    47,143     1,000  
Property and equipment, net    87,777     23,184  
Goodwill    31,045     33,003  
In-process research and development    14,482     15,396  
Long-term deferred tax assets, net    34,723     58,534  
Other assets    8,286     4,422  
Total assets $  550,414  $  423,931  
LIABILITIES AND STOCKHOLDERS' EQUITY     
Current liabilities:     
Accounts payable $  20,620  $  9,381  
Accrued expenses    37,703     28,382  
Deferred revenue    10,495     8,778  
Current portion of capital lease obligation    799     —  
Total current liabilities    69,617     46,541  
Other long-term liabilities    3,251     220  
Contingent consideration    9,153     7,563  
Long-term deferred tax liabilities    783     832  
Capital lease obligation, net of current portion    15,539     —  
Total liabilities    98,343     55,156  
Commitments and contingencies     
Stockholders' equity:     
Class B Preferred Stock, $.01 par value    —     —  
Authorized - 1,000,000 shares; Issued and outstanding - none     
Common stock, $.01 par value    437     426  
Authorized - 100,000,000 shares; Issued - 45,249,281 shares at March 31, 2017 and 43,973,119 shares at March 31, 2016;     
Outstanding - 43,673,286 shares at March 31, 2017 and 42,596,228 shares at March 31, 2016     
Additional paid in capital    565,962     508,624  
Accumulated deficit    (46,959)    (99,075) 
Treasury stock at cost - 1,575,995 shares at March 31, 2017 and 1,376,891 shares at March 31, 2016    (46,763)    (26,660) 
Accumulated other comprehensive loss    (20,606)    (14,540) 
Total stockholders' equity    452,071     368,775  
Total liabilities and stockholders' equity $  550,414  $  423,931  
      


Abiomed, Inc. and Subsidiaries 
Consolidated Statements of Operations 
(Unaudited) 
(in thousands, except per share data) 
             
             
 Three Months Ended
March 31,
 Fiscal Years Ended
March 31,
 
 2017  2016 2017  2016 
Revenue:            
Product revenue$124,654  $93,951 $445,195  $329,520 
Funded research and development 26   6  109   23 
  124,680   93,957  445,304   329,543 
Costs and expenses:            
Cost of product revenue  19,261   14,663  70,627   50,419 
Research and development  16,325   14,225  66,386   49,759 
Selling, general and administrative  60,100   45,256  218,153   164,261 
  95,686   74,144  355,166   264,439 
Income from operations 28,994   19,813  90,138   65,104 
Other income:            
Investment income, net 486   186  1,554   395 
Other (expense) income, net (124)  228  (349)  339 
  362   414  1,205   734 
Income before income taxes 29,356   20,227  91,343   65,838 
Income tax provision 14,457   9,229  39,227   27,691 
Net income$14,899  $10,998 $52,116  $38,147 
             
Basic net income per share$0.34  $0.26 $1.21  $0.90 
Basic weighted average shares outstanding 43,579   42,463  43,238   42,204 
             
Diluted net income per share$0.33  $0.24 $1.17  $0.85 
Diluted weighted average shares outstanding 44,924   45,112  44,658   44,895 
             


For further information please contact: 

Ingrid Goldberg,
Director, Investor Relations
978-646-1590
ir@abiomed.com

Adrienne Smith
Senior Director, Public Relations and Corporate Communications
978-646-1553
adsmith@abiomed.com