EXHIBIT 99.1
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NEWS BOSTON
FOR IMMEDIATE RELEASE SCIENTIFIC
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Boston Scientific Corporation
One Boston Scientific Place
Natick, MA 01760-1537
508.650.8000
www.bostonscientific.com
BOSTON SCIENTIFIC ANNOUNCES
FIRST QUARTER RESULTS
Natick, MA (April 19, 2005) -- Boston Scientific Corporation (NYSE: BSX) today
announced financial results for its first quarter ended March 31, 2005.
HIGHLIGHTS:
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o Net sales of $1.6 billion, an increase of 49 percent
o Worldwide coronary stent sales of $721 million, an increase of 154
percent
o Net income, excluding net special charges, of $431 million, an
increase of 122 percent
o Earnings per share, excluding net special charges, of $0.51 per share,
an increase of 122 percent
Net sales for the first quarter were $1.615 billion as compared to $1.082
billion for the first quarter of 2004, an increase of 49 percent. Excluding the
favorable impact of $26 million of foreign currency fluctuations, net sales
increased 47 percent. Worldwide coronary stent sales for the first quarter were
$721 million as compared to $284 million for the first quarter of 2004, an
increase of 154 percent. Worldwide sales of our TAXUS(R) paclitaxel-eluting
coronary stent systems during the quarter were $686 million, an increase of 219
percent. U.S. sales of our TAXUS(R) Express(2)(TM) paclitaxel-eluting coronary
stent system during the quarter were $494 million.
Net income for the quarter, excluding net special charges, increased 122 percent
to $431 million, or $0.51 per share, as compared to $194 million, or $0.23 per
share, in the first quarter of 2004. Reported net income for the quarter,
including net special charges of $73 million, was $358 million, or $0.42 per
share. The net special charges for the quarter consisted of purchased in-process
research and development costs related to the acquisition of Advanced Stent
Technologies.
"This was another record quarter, thanks in large part to the ongoing success of
the TAXUS Express(2) paclitaxel-eluting coronary stent system," said Jim Tobin,
President and Chief Executive Officer of Boston Scientific. "In the coming
quarters, we expect our recent dramatic growth to return to more moderate
levels, following a full year of TAXUS system sales in the U.S. I want to
congratulate our entire team for achieving global leadership in the drug-eluting
stent market. Maintaining this leadership will continue to be our number one
priority."
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Boston Scientific Corporation / Page 2
April 19, 2005
Boston Scientific officials will be discussing these and other issues with
analysts on a conference call at 11:00 a.m. (ET) Tuesday, April 19. 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 one year 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 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, 2005 March 31, 2004
(in millions, except per share data) Reported Adjustments Adjusted Reported
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Net sales $ 1,615 $ 1,615 $ 1,082
Cost of products sold 344 344 292
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Gross profit 1,271 1,271 790
Selling, general and administrative expenses 431 431 348
Research and development expenses 159 159 134
Royalty expense 64 64 22
Amortization expense 31 31 22
Purchased research and development 73 $ (73)
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758 (73) 685 526
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Operating income 513 73 586 264
Other income (expense):
Interest expense (23) (23) (11)
Other, net 4 4 2
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Income before income taxes 494 73 567 255
Income taxes 136 136 61
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Net income $ 358 $ 73 $ 431 $ 194
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Net income per common share - assuming dilution $ 0.42 $ 0.51 $ 0.23
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Weighted average shares outstanding - assuming dilution 850.2 850.2 855.2
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BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
(in millions) 2005 2004
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Assets
Current assets:
Cash, cash equivalents and short-term investments $ 956 $ 1,640
Trade accounts receivable, net 953 900
Inventories 387 360
Other current assets 461 389
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Total current assets 2,757 3,289
Property, plant and equipment, net 924 870
Intangible assets, net 3,373 3,340
Investments 619 529
Other assets 146 142
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$ 7,819 $ 8,170
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Liabilities and Stockholders' Equity
Current liabilities:
Borrowings due within one year $ 430 $ 1,228
Accounts payable and accrued expenses 945 1,010
Other current liabilities 409 367
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Total current liabilities 1,784 2,605
Long-term debt 1,115 1,139
Other long-term liabilities 530 401
Stockholders' equity 4,390 4,025
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$ 7,819 $ 8,170
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Boston Scientific Corporation
Worldwide Sales
Regional Summary
(Unaudited)
Three Months
Ended March 31, Change
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As Reported Constant
(in millions) 2005 2004 Currency Basis Currency Basis
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Domestic $ 1,005 $ 576 74% 74%
Europe 299 235 27% 21%
Japan 151 155 (3%) (5%)
Inter-Continental 160 116 38% 32%
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International 610 506 21% 16%
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Worldwide $ 1,615 $ 1,082 49% 47%
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Boston Scientific Corporation
Worldwide Sales
Divisional Summary
(Unaudited)
Three Months
Ended March 31, Change
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As Reported Constant
(in millions) 2005 2004 Currency Basis Currency Basis
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Cardiovascular $ 1,192 $ 723 65% 63%
Electrophysiology 32 32 0% (2%)
Neurovascular 69 64 8% 4%
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Cardiovascular 1,293 819 58% 56%
Oncology 50 46 9% 7%
Endoscopy 167 158 6% 4%
Urology 72 59 22% 19%
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Endosurgery 289 263 10% 8%
Neuromodulation 33
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Worldwide $ 1,615 $ 1,082 49% 47%
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