Jul 27, 2017

Abiomed Announces Q1 FY 2018 Revenue of $132.5 Million, Up 29% Over Prior Year

Company announces Japanese reimbursement for Impella® heart pumps and raises lower end of FY 2018 revenue guidance

DANVERS, Mass., July 27, 2017 (GLOBE NEWSWIRE) -- Abiomed, Inc. (NASDAQ:ABMD), a leading provider of breakthrough heart support technologies, today reported first quarter fiscal 2018 revenue of $132.5 million, an increase of 29% compared to revenue of $103.0 million for the same period of fiscal 2017. First quarter fiscal 2018 GAAP net income was $37.4 million or $0.82 per diluted share, compared to GAAP net income of $12.9 million or $0.29 per diluted share for the prior year period.  

Financial and operating highlights during the first quarter of fiscal 2018 include:

"We have been notified by MHLW of Japanese reimbursement for Impella beginning in September allowing our introduction into the world's second largest medical device market," said Michael R. Minogue, Chairman, President and Chief Executive Officer, Abiomed. "Our continued execution validates Abiomed as one of the fastest growing medical technology companies with increasing GAAP profitability and no debt. I am proud of our team's ability to consistently achieve our strategic initiatives and execute on our tactical plan as Abiomed builds the Field of Heart Recovery."

The Company is increasing the lower end of its fiscal year 2018 revenue guidance by $5 million to a new range of $560 million to $575 million, an increase in revenue of 26% to 29% from the prior year. This compares to the prior forecast of $555 million to $575 million. The Company is maintaining its fiscal year guidance for GAAP operating margin in the range of 22% to 24%.

The Company will host a conference call to discuss the results on Thursday, July 27, 2017, at 8:00 a.m. EDT. Michael R. Minogue, Chairman, President and Chief Executive Officer; Michael Tomsicek, Vice President and Chief Financial Officer, will host the conference call.

To listen to the call live, please tune into the webcast via http://investor.abiomed.com or dial (855) 212-2361; the international number is (678) 809-1538.  A replay of this conference call will be available beginning at 11 a.m. EDT July 27, 2017 through 11 a.m. EDT on July 30, 2017. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 51159965.

Based in Danvers, Massachusetts, Abiomed, Inc. is a leading provider of medical devices that provide circulatory support.  Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information, please visit: www.abiomed.com

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 and expected regulatory approvals. 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, including the potential for future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, competition, technological change, government regulation, litigation matters, 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 most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. 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
Consolidated Balance Sheets
(in thousands, except share data)
  June 30, 2017 March 31, 2017
Current assets:    
Cash and cash equivalents $  43,970  $  39,040 
Short-term marketable securities  207,441     190,908 
Accounts receivable, net     53,557     54,055 
Inventories     36,926     34,931 
Prepaid expenses and other current assets    9,021     8,024 
Total current assets  350,915     326,958 
Long-term marketable securities    37,669     47,143 
Property and equipment, net    92,804     87,777 
Goodwill    33,199     31,045 
In-process research and development    15,487     14,482 
Long-term deferred tax assets, net  113,457     34,723 
Other assets    8,686     8,286 
Total assets $652,217  $  550,414 
Current liabilities:    
Accounts payable $  12,784  $  20,620 
Accrued expenses    35,695     37,703 
Deferred revenue    9,697     10,495 
Current portion of capital lease obligation    829     799 
Total current liabilities    59,005     69,617 
Other long-term liabilities    588     3,251 
Contingent consideration    9,418     9,153 
Long-term deferred tax liabilities    837     783 
Capital lease obligation, net of current portion    15,325     15,539 
Total liabilities    85,173     98,343 
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    441     437 
Authorized - 100,000,000 shares; Issued - 45,791,680 shares at June 30, 2017 and 45,249,281 shares at March 31, 2017     
Outstanding - 44,080,941 shares at June 30, 2017 and 43,673,286 shares at March 31, 2017    
Additional paid in capital  580,017     565,962 
Retained earnings (accumulated deficit)    65,661     (46,959)
Treasury stock at cost - 1,710,739 shares at June 30, 2017  and 1,575,995 shares at March 31, 2017   (64,567)    (46,763)
Accumulated other comprehensive loss  (14,508)    (20,606)
Total stockholders' equity  567,044     452,071 
Total liabilities and stockholders' equity $652,217  $  550,414 


Abiomed, Inc. and Subsidiaries 
Consolidated Statements of Operations 
(in thousands, except per share data) 
 Three Months Ended
June 30,
 2017  2016  
Product revenue$  132,431  $  102,989  
Funded research and development   37     6  
    132,468     102,995  
Costs and expenses:      
Cost of product revenue    21,862     15,070  
Research and development    16,931     15,660  
Selling, general and administrative    60,597     51,032  
    99,390     81,762  
Income from operations   33,078     21,233  
Other income:      
Investment income, net   635     269  
Other income (expense), net   79     (77) 
    714     192  
Income before income taxes   33,792     21,425  
Income tax (benefit) provision (1)   (3,582)    8,515  
Net income$  37,374  $  12,910  
Basic net income per share$  0.85  $  0.30  
Basic weighted average shares outstanding   43,895     42,811  
Diluted net income per share (2)$  0.82  $  0.29  
Diluted weighted average shares outstanding   45,608     45,178  
(1) Income tax provision includes the effect of the following item:      
Excess tax benefits related to stock-based compensation awards *$  16,842  $  —  
(2) Diluted net income per share includes the effect of the following item:      
Excess tax benefits related to stock-based compensation awards *$  0.37  $  —  
* In the first quarter of fiscal 2018, the Company adopted Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires that all excess tax benefits and tax deficiencies related share-based compensation arrangements be recognized as income tax benefit or expense, instead of in stockholders' equity as previous guidance required. 
For further information please contact: 

Ingrid Goldberg Ward
Director, Investor Relations

Adrienne Smith
Senior Director, Public Relations and Corporate Communications