EXHIBIT 99.1
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NEWS
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FOR IMMEDIATE RELEASE
BOSTON SCIENTIFIC CORPORATION
ONE BOSTON SCIENTIFIC PLACE
NATICK, MA 01760-1537
www.bostonscientific.com
BOSTON SCIENTIFIC ANNOUNCES
FIRST QUARTER RESULTS
Natick, MA (April 21, 2003) -- Boston Scientific Corporation (NYSE: BSX) today
announced financial results for its first quarter ended March 31, 2003.
Net sales for the first quarter were $807 million as compared to $675 million
for the first quarter of 2002, an increase of 20 percent. Excluding the
favorable impact of $38 million of foreign currency fluctuations, net sales were
$769 million, an increase of 14 percent.
Net income for the quarter, excluding net special charges, increased 31 percent
to $117 million, or $0.28 per share (diluted), as compared to $89 million, or
$0.22 per share, excluding net special charges, in the first quarter of 2002.
Reported net income for the quarter, including net special charges of $20
million, was $97 million, or $0.23 per share, as compared to reported net income
of $82 million, or $0.20 per share, in the first quarter of 2002.
The net special charges for the quarter include purchased in-process research
and development costs of $13 million primarily related to the recent acquisition
of InFlow Dynamics, Inc., and a $7 million charge related to litigation with the
Federal Trade Commission.
"We made progress on a number of fronts during the first quarter," said Jim
Tobin, President and Chief Executive Officer of Boston Scientific. "First, we
experienced double-digit growth in each of our six operating divisions on a
worldwide basis. Our coronary stent business was up 80 percent from the prior
year. We began the launch of our TAXUS(TM) drug-eluting coronary stent system in
Europe and other international markets, and we have been gratified by its
enthusiastic reception. In the U.S., we filed the first two modules of our TAXUS
Pre-Market Approval (PMA) application and were granted expedited review status
by the FDA. We also reported excellent 12-month
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Boston Scientific Corporation/Page 2
April 21, 2003
follow-up data from our TAXUS II clinical trial, completed enrollment in TAXUS
VI, and are currently enrolling patients in TAXUS V at a rapid rate. Further,
last week we filed our third TAXUS module with the FDA."
"We were also pleased to see our Neurovascular business perform well in the
quarter as we continued to roll out our Matrix(TM) Detachable Coil and our
Neuroform(TM) Microdelivery Stent System," added Tobin. "These products
represent pioneering technology and provide clinicians with powerful new options
for treating cerebral aneurysms less invasively. In addition, we were encouraged
by the progress of our European and Intercontinental teams, as they turned in
strong performances for the quarter."
Boston Scientific officials will be discussing these and other issues with
analysts on a conference call at 5:30 p.m. (ET) Monday, April 21. The Company
will webcast the call to all interested parties through its website
www.bostonscientific.com. Please see the website for details on how to access
the webcast. The webcast will be available for 10 business days on the Boston
Scientific website.
Boston Scientific is a worldwide developer, manufacturer and marketer of medical
devices. The Company's products are used in a broad range of interventional
medical specialties.
This press release contains forward-looking statements. The Company wishes to
caution the reader of this press release that actual results may differ from
those discussed in the forward-looking statements and may be adversely affected
by, among other things, risks associated with new product development and
introduction, clinical trials, regulatory approvals, competitive offerings,
intellectual property, litigation, the Company's relationship with third
parties, the Company's overall business strategy, and other factors described in
the Company's filings with the Securities and Exchange Commission.
CONTACT: Milan Kofol
508-650-8569
Investor Relations
Boston Scientific Corporation
Paul Donovan
508-650-8541
Media Relations
Boston Scientific Corporation
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Three Months Ended
March 31, 2003 March 31, 2002
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IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA Reported Adjustments Adjusted Reported Adjustments Adjusted
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Net sales $ 807 $ 807 $ 675 $ 675
Cost of products sold 226 226 207 $ (10) 197
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Gross profit 581 581 468 10 478
Selling, general and administrative expenses 271 271 241 241
Amortization expense 20 20 17 17
Royalties 12 12 9 9
Research and development expenses 103 103 76 76
Litigation-related charges 7 $ (7)
Purchased research and development 13 (13)
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426 (20) 406 343 343
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Operating income 155 20 175 125 10 135
Other income (expense):
Interest expense (11) (11) (12) (12)
Other, net (4) (4) 4 4
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Income before income taxes 140 20 160 117 10 127
Income taxes 43 43 35 3 38
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Net income $ 97 $ 20 $ 117 $ 82 $ 7 $ 89
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Net income per common share - assuming dilution $ 0.23 $ 0.28 $ 0.20 $ 0.22
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Weighted average shares outstanding -
assuming dilution (in thousands) 422,016 422,016 411,097 411,097
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BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
IN MILLIONS 2003 2002
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Assets
Current assets:
Cash and cash equivalents $ 294 $ 277
Trade accounts receivable, net 452 435
Inventories 241 243
Other current assets 253 253
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Total current assets 1,240 1,208
Property, plant and equipment, net 656 636
Intangibles, net 2,392 2,367
Other assets 279 239
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$ 4,567 $ 4,450
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Liabilities and Stockholders' Equity
Current liabilities:
Borrowings due within one year $ 425 $ 88
Accounts payable and accrued expenses 472 705
Other current liabilities 150 130
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Total current liabilities 1,047 923
Long-term debt 826 847
Other long-term liabilities 219 213
Stockholders' equity 2,475 2,467
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$ 4,567 $ 4,450
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BOSTON SCIENTIFIC CORPORATION
WORLDWIDE SALES
REGIONAL SUMMARY
(UNAUDITED)
WORLDWIDE TOTAL (1)
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Three Months
Ended March 31, Change
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At Actual At Constant
Foreign Foreign
Currency Currency
In millions 2003 2002 Basis Basis
-------- -------- -------- --------
DOMESTIC $ 479 $ 405 18% 18%
EUROPE 145 106 37% 13%
JAPAN 126 116 9% (2%)
INTERCONTINENTAL 57 48 19% 18%
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INTERNATIONAL 328 270 21% 8%
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WORLDWIDE $ 807 $ 675 20% 14%
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(1) Certain prior year's amounts have been reclassified to conform to the
current year's presentation.
BOSTON SCIENTIFIC CORPORATION
WORLDWIDE SALES
DIVISIONAL SUMMARY
(UNAUDITED)
WORLDWIDE TOTAL (1)
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Three Months
Ended March 31, Change
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At Actual At Constant
Foreign Foreign
Currency Currency
In millions 2003 2002 Basis Basis
-------- -------- -------- --------
Cardiovascular $ 502 $ 416 21% 15%
Electrophysiology 27 22 23% 17%
Neurovascular 51 41 24% 15%
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CARDIOVASCULAR GROUP 580 479 21% 15%
Oncology 38 33 15% 11%
Endoscopy 138 119 16% 10%
Urology 51 44 16% 14%
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ENDOSURGERY GROUP 227 196 16% 11%
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WORLDWIDE $ 807 $ 675 20% 14%
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(1) Certain prior year's amounts have been reclassified to conform to the
current year's presentation.