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Thoratec Reports 37 Percent Increase in Annual Revenues From Continuing Operations
Date:1/27/2011

includes the PVAD and IVAD, accounted for sales of $29.5 million, a 15 percent decline versus revenues of $34.8 million a year ago. CentriMag® Blood Pump sales in 2010 were $17.7 million, an increase of 41 percent compared to sales of $12.6 million in 2009. The balance of the company’s revenues reflects contribution from its graft business. In 2010, pump sales accounted for $264.3 million, an increase of 29 percent over revenues of $204.6 million a year ago, while non-pump sales accounted for $116.0 million, an increase of 60 percent versus revenue of $72.6 million a year ago. Revenues in North America were $324.3 million, an increase of 38 percent over revenues of $234.2 million a year ago. International revenues in 2010 were $58.7 million, an increase of 28 percent compared to sales of $45.8 million in 2009. Foreign exchange rate fluctuations in 2010 had a $1.4 million unfavorable impact on revenues compared to 2009.

GAAP gross margin in 2010 was 67.7 percent versus 65.9 percent a year ago. Non-GAAP gross margin, which is described later in this press release, was 68.0 percent versus 66.2 percent in 2009. The year-over-year increase in gross margin was due to increased volume and the roll-out of our external peripherals, as well as lower inventory reserves driven by the $6.9 million of HeartMate XVE reserves recorded in 2009.  These benefits were in part offset by increased warranty costs and pump to non-pump mix.

Operating expenses on a GAAP basis in 2010 were $157.8 million versus $134.6 million a year ago. On a non-GAAP basis, operating expenses in 2010 were $136.7 million versus $103.3 million in 2009. Operating expenses on a non-GAAP basis are described later in this press release. The year-over-year increase in operating expenses was due primarily to spending on product and market development initiatives, including sales force expansion and the addition of research and development personnel, as well as the PHP acquisition, whic
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SOURCE Thoratec Corporation
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