Atricure reports second quarter 2013 financial results; raises 2013
revenue outlook
West chester, ohio--(business wire)--atricure, inc. (nasdaq: atrc), a medical device company and a leader in the development of technologies and solutions for the treatment of atrial fibrillation, or afib, and systems for the exclusion of the left atrial appendage, today announced financial results for the second quarter of 2013. “our second quarter results reflect our second consecutive quarter of double digit revenue growth, driven by overall strength and, notably, our u.s. business which was up 15% in the quarter. we are starting to see the results of our training and education efforts in capturing market share,” said mike carrel, president and chief executive officer of atricure. “based on continued strength across all of our product lines, we are updating our outlook for 2013 to reflect anticipated revenue growth of 10% - 12% from 2012. we will continue to invest in transforming atricure into a commercially focused organization using training and clinical outcomes to accelerate revenue growth.” second quarter 2013 financial results revenue for the second quarter of 2013 was a record $20.4 million, an increase of $2.1 million or 11.8% (11.5% on a constant currency basis), compared to second quarter 2012 revenue. domestic revenue increased 15.2% to $15.4 million, driven by strong sales of ablation-related open-heart products and atriclip products. international revenue was $5.0 million, an increase of $0.1 million or 2.4% (1.1% on a constant currency basis) when compared to $4.9 million for the second quarter of 2012. international revenue growth was driven primarily by increased sales to direct customers and certain distributors. gross profit for the second quarter of 2013 was $15.1 million compared to $12.7 million for the second quarter of 2012. gross margin for the second quarter of 2013 and 2012 was 74.0% and 69.6%, respectively. the increase in gross margin was due primarily to volume-driven leverage of manufacturing overhead expenses, a higher mix of domestic sales and the strong performance of our new atriclip pro product. operating expenses for the second quarter of 2013 increased 19.5%, or $2.7 million, compared to the second quarter of 2012. the increase in operating expenses was driven primarily by an increase in selling, marketing and training expenses. loss from operations for the second quarter of 2013 was $1.6 million compared to $1.3 million for the second quarter of 2012. net loss per share was $0.09 for the second quarter of 2013 and $0.08 for the second quarter of 2012. cash, cash equivalents and investments were $34.9 million at june 30, 2013 and cash used in operations during the second quarter of 2013 was $0.3 million. 2013 guidance management projects that 2013 revenue will be in the range of $77.0 - $78.5 million, an increase of 10% - 12% from 2012. this compares to the previous outlook for 2013 revenue in the range of $76.5 - $78.0 million, an increase of 9% - 11% from 2012. adjusted ebitda, a non-gaap measure, is projected to be a loss in the range of $3.0 to $5.0 million including the impact of the medical device excise tax which is estimated to be in the range of $0.8 - $1.0 million for 2013. management expects to continue making investments targeted at future revenue growth. conference call atricure will host a conference call at 4:30 p.m. eastern time on thursday, august 1, 2013 to discuss its second quarter 2013 financial results. a live webcast of the conference call will be available online from the investor relations page of atricure’s corporate website at www.atricure.com. you may also access this call through an operator by calling (888) 713-4211 for domestic callers and (617) 213-4864 for international callers at least 15 minutes prior to the call start time using reservation code 51971753. the webcast will be available on atricure’s website and a telephonic replay of the call will also be available through september 1, 2013. the replay dial-in numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. the reservation code is 22164965. about atricure, inc. atricure, inc. is a medical device company providing innovative atrial fibrillation (afib) solutions designed to produce superior outcomes that reduce the economic and social burden of atrial fibrillation. atricure’s synergy ablation system is the first and only device approved for the treatment of persistent and longstanding persistent forms of afib in patients undergoing certain open concomitant procedures. atricure’s atriclip left atrial appendage (laa) exclusion device is the most widely implanted device for laa management worldwide. the company believes cardiothoracic surgeons are adopting its ablation and laa management devices for the treatment of afib and reduction of afib related complications such as stroke. afib affects more than 5.5 million people worldwide. forward-looking statements this press release contains “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. forward-looking statements include statements that address activities, events or developments that atricure expects, believes or anticipates will or may occur in the future, such as earnings estimates (including projections and guidance), other predictions of financial performance, launches by atricure of new products and market acceptance of atricure’s products. forward-looking statements are based on atricure’s experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances and are subject to numerous risks and uncertainties, many of which are beyond atricure’s control. these risks and uncertainties include the rate and degree of market acceptance of atricure’s products, atricure’s ability to develop and market new and enhanced products, the timing of and ability to obtain and maintain regulatory clearances and approvals for its products, the timing of and ability to obtain reimbursement of procedures utilizing atricure’s products, competition from existing and new products and procedures or atricure’s ability to effectively react to other risks and uncertainties described from time to time in atricure’s sec filings, such as fluctuation of quarterly financial results, reliance on third party manufacturers and suppliers, litigation or other proceedings, government regulation and stock price volatility. atricure does not guarantee any forward-looking statement, and actual results may differ materially from those projected. atricure undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. a further list and description of risks, uncertainties and other matters can be found in our annual reports on form 10-k and quarterly reports on form 10-q. use of non-gaap financial measures to supplement atricure’s condensed consolidated financial statements prepared in accordance with u.s. generally accepted accounting principles, or gaap, atricure uses certain non-gaap financial measures in this release as supplemental financial metrics. non-gaap financial measures provide an indication of performance excluding certain items. our management believes that in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to gaap measures. the excluded items vary in frequency and/or impact on our continuing operations and our management believes that the excluded items are typically not reflective of our ongoing core business operations. further, management uses results of operations before these excluded items as a basis for its strategic planning. the non-gaap financial measures used by atricure may not be the same or calculated the same as those used by other companies. reconciliations of the non-gaap financial measures used in this release to the most comparable gaap measures for the respective periods can be found in tables later in this release. non-gaap financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for atricure’s financial results prepared and reported in accordance with gaap. adjustments to reconcile net loss to net cash used in operating activities: net cash used in operating activities proceeds from issuance of common stock under employee stock purchase plan
