Exhibit 99.1
Greatbatch, Inc. Revises 2007 Financial Guidance
CLARENCE, N.Y.--(BUSINESS WIRE)--Sept. 25, 2007--Greatbatch, Inc. (the
"Company") (NYSE: GB) announced today that, based on the recent receipt from its
customers of updated demand forecasts for the balance of the year, it is
adjusting its recent 2007 guidance. The Company believes that the revisions to
the customers demand forecasts include the impact of inventory adjustments as
well as their revised outlooks for the balance of the year. The Company expects
full year sales to be in the range of $305 million to $315 million, GAAP EPS of
$0.67 - $071 and adjusted EPS of $1.37 - $1.41. The GAAP EPS guidance adjustment
for 2007 is primarily due to reduced sales volume. This was partially offset by
lower expense ($0.09) associated with a revision to the in-process research and
development charge related to the acquisition of Enpath Medical, Inc.
Thomas Hook, President and CEO, commented "We are lowering our near term
sales projections. However, 2007 is still anticipated to be a record sales year
for Greatbatch. The revised sales forecast represents a 13% to 16% increase from
the 2006 actual results. After adjusting for the acquisition of Enpath, the
organic growth rate is forecasted to be 6% - 9%, which exceeds the projected
2007 composite market growth. We remain confident that our strategic initiatives
have positioned Greatbatch for continued growth."
Current Previous
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Sales (000's) $305,000 - $315,000 $320,000 - $325,000
GAAP EPS (1)(4) $0.67 - $0.71 $0.78 - $0.82
EPS - adjusted (1)(2)(3)(4)(5) $1.37 - $1.41 $1.57 - $1.64
Diluted weighted average shares
outstanding (000's) 24,500 24,500
Effective tax rate 48.0% 47.5%
Capital spending (000's) (6) $20,000 - $35,000 $35,000 - $45,000
(1) Includes the impact of stock-based compensation under FAS123(R) of
$0.12 to $0.15.
(2) Excludes plant relocation/asset dispositions of $0.14 to $0.16.
Includes continued excess capacity costs associated with delayed
closure of feedthrough facility.
(3) Excludes gain on exchange of debentures of $0.12.
(4) Includes $0.11 gain on sale of investment realized in Q2 2007.
(5) Excludes write-off of in-process research and development costs of
$0.63 ($0.72 in previous guidance) and $0.04 for other acquisition
related adjustments.
(6) Includes expansion of Electrochem Commercial Power facility of
approximately $10 million, reduced from $20 million in previous
guidance due to the timing of payments.
Forward-Looking Statements
Some of the statements in this press release and other written and oral
statements made from time to time by the Company and its representatives are
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934,
as amended, and involve a number of risks and uncertainties. These statements
can be identified by terminology such as "may," "will," "should," "could,"
"expects," "intends," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential" or "continue," or the negative of these terms or other
comparable terminology. These statements are based on the Company's current
expectations. The Company's actual results could differ materially from those
stated or implied in such forward-looking statements. Risks and uncertainties
that could cause actual results to differ materially from those stated or
implied by such forward-looking statements include, among others, the following
matters affecting the Company: dependence upon a limited number of customers;
customer ordering patterns; product obsolescence; inability to market current or
future products; pricing pressure from customers; our ability to timely and
successfully implement our cost reduction and plant consolidation initiatives;
reliance on third party suppliers for raw materials, products and subcomponents;
fluctuating operating results; inability to maintain high quality standards for
our products; challenges to our intellectual property rights; product liability
claims; inability to successfully consummate and integrate acquisitions;
unsuccessful expansion into new markets; competition; inability to obtain
licenses to key technology; regulatory changes or consolidation in the
healthcare industry; and other risks and uncertainties described in the
Company's Annual Report on Form 10-K and in other periodic filings with the
Securities and Exchange Commission. The Company assumes no obligation to update
forward-looking information in this press release whether to reflect changed
assumptions, the occurrence of unanticipated events or changes in future
operating results, financial conditions or prospects, or otherwise.
About Greatbatch, Inc.
Greatbatch, Inc. (NYSE: GB) is a leading developer and manufacturer of
critical components used in medical devices for the cardiac rhythm management,
neurostimulation and interventional radiology markets. Additionally, Greatbatch
supplies commercial power sources for other technically demanding applications.
Additional information about the Company is available at www.greatbatch.com.
CONTACT: Greatbatch, Inc.
Anthony W. Borowicz, 716-759-5809
Treasurer and Director, Investor Relations
tborowicz@greatbatch.com