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Volcano Reports Record Third Quarter Revenues
Date:11/8/2007

Accrued compensation 7,223 5,993

Accrued expenses and other

current liabilities 5,839 5,292

Deferred revenues 4,241 2,675

Current maturities of

long-term debt 322 1,654

Total current liabilities 29,457 23,823

Long-term debt 90 66

Deferred license fee 1,188 1,375

Other 219 279

Total liabilities 30,954 25,543

Stockholders' equity 132,004 129,182

$162,958 $154,725

VOLCANO CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2007 2006 2007 2006

Revenues $31,474 $27,782 $90,605 $73,517

Cost of revenues 12,285 10,560 35,466 30,248

Gross profit 19,189 17,222 55,139 43,269

Operating expenses:

Selling, general and

administrative 16,005 11,769 44,271 35,027

Research and development 4,837 3,965 15,241 12,835

Amortization of intangibles 751 781 2,313 2,332

Total operating expenses 21,593 16,515 61,82
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SOURCE Volcano Corporation
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