EXHIBIT 99.1
Abiomed Announces Fiscal Second Quarter 2007 Results
DANVERS, Mass.--(BUSINESS WIRE)--Nov. 8, 2006--Abiomed, Inc.
(NASDAQ: ABMD) today announced revenue of $10.9 million for its second
fiscal quarter ended September 30, 2006. Revenue for the first six
months of fiscal 2007 was $23.9 million, up approximately 23% compared
to revenue of $19.4 million in the first six months of fiscal 2006.
Comparing the second fiscal quarter of 2007 revenue of $10.9
million to the second fiscal quarter of 2006 revenue of $10.9 million,
AB5000 grew 31%, and BVS decreased approximately 37%. While not a
significant contribution to total revenue for the second fiscal
quarter of 2007, revenues from Impella increased 75% compared to the
same period of fiscal 2006.
Recent operating highlights and financial results for the second
fiscal quarter of 2007 as compared to the second fiscal quarter of
2006 included:
-- The Company's AbioCor(R) Implantable Replacement Heart
received approval from the U.S. Food and Drug Administration
under a Humanitarian Device Exemption (HDE).
-- Revenue from console sales (AB5000 and Impella) grew 85%.
-- The highest number of patients placed on AB5000 Circulatory
Support worldwide.
-- Commencement of the Impella 2.5 pilot study in the United
States.
-- Gross margin for the second fiscal quarter of 2007 was 73%.
-- The second fiscal quarter of 2007 reported net loss was $8.7
million, or $.33 per share. The net loss for the second fiscal
quarter of 2007 included stock option expense of approximately
$1.6 million, or $.06 per share.
"We are focused on executing our strategic goals and made progress
this quarter on expanding our product portfolio with regulatory
approvals and growing our global distribution," said Michael R.
Minogue, Chairman, CEO and President of Abiomed.
Financial information for the second quarter of fiscal 2007 is
attached to this press release.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call at 4:30 p.m. ET on
November 8, 2006. Michael R. Minogue, Chairman, Chief Executive
Officer and President, and Daniel J. Sutherby, Chief Financial
Officer, will host the conference call.
To listen to the call live, please tune into the webcast via
www.abiomed.com/investors or dial 800-659-2056; the international
number is 617-614-2714. The conference call passcode is 99611049. A
replay of this conference call will be available beginning at 6:30 p.m
ET on November 8, 2006, through 6:30 p.m. ET on November 15, 2006. The
replay phone number is 888-286-8010; the international number is
617-801-6888. The replay access code is 60928364.
ABOUT ABIOMED
Based in Danvers, Massachusetts, Abiomed, Inc., is a leading
developer, manufacturer and marketer of medical products designed to
assist or replace the pumping function of the failing heart. Abiomed
currently manufactures and sells the AB5000(TM) Circulatory Support
System and the BVS(R) 5000 Biventricular Support System for the
temporary support of all patients with failing but potentially
recoverable hearts. In Europe, Abiomed offers the minimally invasive
Impella(R) Circulatory Support Systems under CE Mark approval. The
Impella(R) 5.0 and 2.5 are investigational devices limited by Federal
Law solely to investigational use in the United States. Other Impella
devices are not yet available for sale in the United States. The
Company's AbioCor(R) Implantable Replacement Heart is now available
under a Humanitarian Device Exemption granted by the United States
Food and Drug Administration. 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. 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, anticipated
future losses, complex manufacturing, high quality requirements,
dependence on limited sources of supply, competition, technological
change, government regulation, 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 Annual Report filed on Form 10-K. 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
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share data)
- ----------------------------------------------------------------------
September 30, March 31,
2006 2006
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,052 $ 7,832
Short-term marketable securities 14,931 23,003
Accounts receivable, net 8,300 8,880
Inventories 5,590 4,868
Prepaid expenses and other current assets 2,071 1,860
------------- -------------
Total current assets 37,944 46,443
Property and equipment, net 5,492 4,824
Intangible assets, net 7,674 8,164
Goodwill 19,969 19,106
------------- -------------
Total assets $71,079 $78,537
------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,512 $ 3,070
Accrued expenses 5,374 5,185
Deferred revenue 666 484
------------- -------------
Total current liabilities 9,552 8,739
Long-term deferred tax 550 310
------------- -------------
Total liabilities 10,102 9,049
------------- -------------
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 267 265
Authorized - 100,000,000 shares;
Issued - 26,708,893 shares at
September 30, 2006 and 26,474,270
shares at March 31, 2006;
Outstanding - 26,702,714 shares at
September 30, 2006 and 26,468,091
shares at March 31, 2006
Additional paid-in-capital 219,502 214,666
Deferred stock-based compensation -- (171)
Accumulated deficit (158,115) (143,308)
Treasury stock at cost; 6,179 shares at
September 30, 2006 and March 31, 2006 (66) (66)
Accumulated other comprehensive loss (611) (1,898)
------------- -------------
Total stockholders' equity 60,977 69,488
------------- -------------
Total liabilities and stockholders' equity $71,079 $78,537
============= =============
ABIOMED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)
- ----------------------------------------------------------------------
Three months ended Six months ended
September 30, September 30,
------------------ ------------------
2006 2005 2006 2005
(Fiscal (Fiscal
Q2 '07) Q2 '06)
Revenue:
Products $10,867 $10,758 $23,875 $19,158
Funded research and development 19 178 19 201
------------------ ------------------
10,886 10,936 23,894 19,359
Cost of product revenue and
operating expenses:
Cost of product revenue
excluding amortization 2,925 2,448 6,408 4,781
Research and development 5,285 4,327 10,704 8,291
Selling, general and
administrative 11,046 6,844 20,438 14,147
Expensed in-process research
and development -- -- 800 13,306
Amortization of intangible
assets 504 356 870 607
------------------ ------------------
19,760 13,975 39,220 41,132
------------------ ------------------
Loss from operations (8,874) (3,039) (15,326) (21,773)
------------------ ------------------
Other income:
Investment income 286 296 601 560
Foreign exchange gain (loss) (27) (58) 87 (112)
Other income, net 42 22 72 38
------------------ ------------------
301 260 760 486
------------------ ------------------
Net loss before provision for
income taxes (8,573) (2,779) (14,566) (21,287)
------------------ ------------------
Provision for income taxes 103 -- 241 --
------------------ ------------------
Net loss $(8,676) $(2,779) $(14,807)$(21,287)
================== ==================
Basic and diluted loss per share $(0.33) $(0.11) $(0.56) $(0.85)
Weighted average shares
outstanding 26,611 26,251 26,553 25,056
CONTACT: Abiomed, Inc.
Daniel J. Sutherby, 978-646-1812
Chief Financial Officer
ir@abiomed.com
or
Liza Heapes, 978-646-1668
Media Relations
mediarelations@abiomed.com