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Volcano Reports 40 Percent Growth in Quarterly Revenues

,236 49,859

Nine Months Ended September 30, 2007

Stock- In-

based process Acquisition

compensa- research due Non-

GAAP tion and diligence GAAP

results expense development costs results

Revenues $90,605 $- $- $- $90,605

Cost of revenues 35,466 (434) - - 35,032

Gross profit 55,139 434 - - 55,573

Operating expenses:

Selling, general and

administrative 44,271 (3,486) - - 40,785

Research and development 15,241 (783) - - 14,458

Amortization of

intangibles 2,313 - - - 2,313

Total operating

expenses 61,825 (4,269) - - 57,556

Operating loss (6,686) 4,703 - - (1,983)

Interest income 3,630 - - - 3,630

Interest expense (193) - - - (193)

Exchange rate gain 1,042 - - - 1,042

Income (loss) before

provision for income

taxes (2,207) 4,703 - - 2,496

Provision for income taxes 626 - - - 626

Net income (loss) $(2,833) $4,703 $- $- $1,870

Net income (loss) per share

- basic $(0.07) $0.12 $- $- $0.05

Net income (loss) per share

- diluted $(0.07) $0.11 $-

SOURCE Volcano Corporation
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All rights reserved

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