EXHIBIT 99.1
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NEWS BOSTON
FOR IMMEDIATE RELEASE SCIENTIFIC
Boston Scientific Corporation
One Boston Scientific Place
Natick, MA 01760-1537
www.bostonscientific.com
BOSTON SCIENTIFIC ANNOUNCES
SECOND QUARTER RESULTS
Natick, MA (July 22, 2003) -- Boston Scientific Corporation (NYSE: BSX) today
announced financial results for its second quarter ended June 30, 2003.
Net sales for the second quarter were $854 million as compared to $708 million
for the second quarter of 2002, an increase of 21 percent. Excluding the
favorable impact of $40 million of foreign currency fluctuations, net sales were
$814 million, an increase of 15 percent.
Net income for the quarter, excluding net special charges, increased 33 percent
to $126 million, or $0.30 per share (diluted), as compared to $95 million, or
$0.23 per share, excluding net special charges, in the second quarter of 2002.
Reported net income for the quarter, including net special charges of $12
million (after-tax), was $114 million, or $0.27 per share, as compared to
reported net income of $25 million, or $0.06 per share, in the second quarter of
2002.
The net special charges for the quarter include purchased in-process research
and development costs of $12 million (after-tax), or $0.03 per share, related to
acquisitions.
"This was our first full quarter of TAXUS sales in Europe and other
international markets, and we were encouraged by the enthusiastic reception,
which has resulted in our achieving what we believe to be unit market share
leadership in those markets where TAXUS has been launched," said Jim Tobin,
President and Chief Executive Officer of Boston Scientific. "Momentum continues
to build for TAXUS, and we feel this bodes well for our U.S. launch. The quarter
also saw further progress in our TAXUS clinical program, with the filing of our
Pre-Market Application with the FDA and the presentation of strong follow-up
data from three clinical trials and a transitional registry."
Boston Scientific officials will be discussing these and other issues with
analysts on a conference call at 5:30 p.m. (ET) Tuesday, July 22. 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 whose products are used in a broad range of interventional medical
specialties. For more information, please visit: www.bostonscientific.com.
The Company discloses non-GAAP or pro forma measures that exclude certain
charges. Non-GAAP measures may exclude such items as charges related to
purchased in-process research and development and certain litigation. Management
uses these measures to establish operational goals, and believes that non-GAAP
measures may assist investors in analyzing the underlying trends in the
Company's business over time. Investors should consider these non-GAAP measures
in addition to, not as a substitute for, or as superior to, financial reporting
measures prepared in accordance with GAAP.
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
June 30, 2003 June 30, 2002
In millions, except share and per share data Reported Adjustments Adjusted Reported Adjustments Adjusted
- ------------------------------------------------------------------------------------------------------------------------------------
Net sales $854 $854 $708 $708
Cost of products sold 235 235 225 ($19) 206
------------------------------------ ------------------------------------
Gross profit 619 619 483 19 502
Selling, general and administrative expenses 292 292 246 246
Amortization expense 21 21 17 17
Royalties 13 13 8 8
Research and development expenses 108 108 85 85
Purchased research and development 12 ($12) 45 (45)
------------------------------------ ------------------------------------
446 (12) 434 401 (45) 356
------------------------------------ ------------------------------------
Operating income 173 12 185 82 64 146
Other income (expense):
Interest expense (12) (12) (10) (10)
Other, net (18) 18
------------------------------------ ------------------------------------
Income before income taxes 161 12 173 54 82 136
Income taxes 47 47 29 12 41
------------------------------------ ------------------------------------
Net income $114 $12 $126 $25 $70 $95
==================================== ====================================
Net income per common share - assuming dilution $0.27 $0.30 $0.06 $0.23
========= ========= ========= =========
Weighted average shares outstanding -
assuming dilution (in thousands) 422,381 422,381 412,964 412,964
========= ========= ========= =========
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended Six Months Ended
June 30, 2003 June 30, 2002
In millions, except share and per share data Reported Adjustments Adjusted Reported Adjustments Adjusted
- ------------------------------------------------------------------------------------------------------------------------------------
Net sales $1,661 $1,661 $1,383 $1,383
Cost of products sold 461 461 432 ($29) 403
------------------------------------ ------------------------------------
Gross profit 1,200 1,200 951 29 980
Selling, general and administrative expenses 563 563 487 487
Amortization expense 41 41 34 34
Royalties 25 25 17 17
Research and development expenses 211 211 161 161
Litigation-related charges 7 ($7)
Purchased research and development 25 (25) 45 (45)
------------------------------------ ------------------------------------
872 (32) 840 744 (45) 699
------------------------------------ ------------------------------------
Operating income 328 32 360 207 74 281
Other income (expense):
Interest expense (23) (23) (22) (22)
Other, net (4) (4) (14) 18 4
------------------------------------ ------------------------------------
Income before income taxes 301 32 333 171 92 263
Income taxes 90 90 64 15 79
------------------------------------ ------------------------------------
Net income $211 $32 $243 $107 $77 $184
==================================== ====================================
Net income per common share - assuming dilution $0.50 $0.58 $0.26 $0.45
========= ========= ========= =========
Weighted average shares outstanding -
assuming dilution (in thousands) 422,198 422,198 412,031 412,031
========= ========= ========= =========
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
In millions 2003 2002
- -------------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $410 $277
Trade accounts receivable, net 478 435
Inventories 239 243
Other current assets 248 253
--------------------------
Total current assets 1,375 1,208
Property, plant and equipment, net 678 636
Intangibles, net 2,440 2,367
Other assets 428 239
--------------------------
$4,921 $4,450
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings due within one year $351 $88
Accounts payable and accrued expenses 564 705
Other current liabilities 192 130
--------------------------
Total current liabilities 1,107 923
Long-term debt 974 847
Other long-term liabilities 188 213
Stockholders' equity 2,652 2,467
--------------------------
$4,921 $4,450
==========================
BOSTON SCIENTIFIC CORPORATION
WORLDWIDE SALES
REGIONAL SUMMARY
(Unaudited)
WORLDWIDE TOTAL (1)
------------------------------------------------------------------
Three Months Ended
June 30, Change
------------------------------------------------------------------
At Actual Foreign At Constant Foreign
In millions 2003 2002 Currency Basis Currency Basis
--------- --------- ----------------- -------------------
DOMESTIC $482 $420 15% 15%
EUROPE 165 115 43% 20%
JAPAN 134 120 12% 5%
INTERCONTINENTAL 73 53 38% 30%
--------- --------- ----------------- -------------------
INTERNATIONAL 372 288 29% 16%
--------- --------- ----------------- -------------------
WORLDWIDE $854 $708 21% 15%
========= ========= ================= ===================
WORLDWIDE TOTAL (1)
------------------------------------------------------------------
Six Months Ended
June 30 Change
------------------------------------------------------------------
At Actual Foreign At Constant Foreign
In millions 2003 2002 Currency Basis Currency Basis
--------- --------- ----------------- -------------------
DOMESTIC $961 $825 16% 16%
EUROPE 310 221 40% 17%
JAPAN 260 236 10% 1%
INTERCONTINENTAL 130 101 29% 25%
--------- --------- ---------------- -------------------
INTERNATIONAL 700 558 25% 12%
--------- --------- ---------------- -------------------
WORLDWIDE $1,661 $1,383 20% 15%
========= ========= ================ ===================
(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)
------------------------------------------------------------------
Three Months Ended
June 30 Change
------------------------------------------------------------------
At Actual Foreign At Constant Foreign
In millions 2003 2002 Currency Basis Currency Basis
--------- --------- ----------------- -------------------
Cardiovascular $532 $431 23% 17%
Electrophysiology 28 26 8% 3%
Neurovascular 55 42 31% 23%
--------- --------- ----------------- -------------------
CARDIOVASCULAR 615 499 23% 17%
Oncology 41 34 21% 15%
Endoscopy 144 129 12% 6%
Urology 54 46 17% 15%
--------- --------- ----------------- -------------------
ENDOSURGERY 239 209 14% 10%
--------- --------- ----------------- -------------------
WORLDWIDE $854 $708 21% 15%
========= ========= ================= ===================
WORLDWIDE TOTAL (1)
------------------------------------------------------------------
Six Months Ended
June 30, Change
------------------------------------------------------------------
At Actual Foreign At Constant Foreign
In millions 2003 2002 Currency Basis Currency Basis
--------- --------- ----------------- -------------------
Cardiovascular $1,034 $847 22% 16%
Electrophysiology 55 48 15% 10%
Neurovascular 106 83 28% 19%
--------- --------- ----------------- -------------------
CARDIOVASCULAR 1,195 978 22% 16%
Oncology 79 67 18% 13%
Endoscopy 282 248 14% 8%
Urology 105 90 17% 14%
--------- --------- ----------------- -------------------
ENDOSURGERY 466 405 15% 10%
--------- --------- ----------------- -------------------
WORLDWIDE $1,661 $1,383 20% 15%
========= ========= ================= ===================
(1) Certain prior year's amounts have been reclassified to conform to the
current year's presentation.