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Volcano Achieves 22 Percent Increase in First Quarter Revenues; Sales Growth, Margin Expansion Drive Profitability
Date:5/4/2011

approximately $1 million in the first quarter of 2011 and that it expects an additional combined total impact of $4 million in the second and third quarters of 2011, with activity returning to historical levels by the fourth quarter.

"In spite of the current situation in Japan, we continue to be excited about our opportunities there, not only because of our current strong position in the market, but also due to our continued product innovation," Huennekens noted. "During the first quarter, we received clearance to market both the Eagle Eye Platinum digital IVUS catheter - the most advanced digital IVUS catheter on the market - and the PrimeWire PRESTIGE FFR guide wire in Japan. In addition, we recently received regulatory approval for our VIBE RX Vascular Imaging Balloon Catheter in Japan and expect to initiate the product launch during the current quarter. We believe the VIBE, which combines imaging and therapy on a single catheter, will provide us a meaningful competitive advantage in the market," he added.

"Volcano has started 2011 with an excellent performance and we believe our one system, many solutions strategy will continue to drive growth, not only with our existing offerings, but also through a rich pipeline of products we plan to roll out over the next two years that could more than double the size of our addressable markets. Despite the short-term issues in Japan, we are on track to meet our long-term revenue, margin expansion, operating leverage and profitability goals," Huennekens said.

Guidance for 2011

The company provided updated guidance for fiscal 2011. Because of the expected $5 million impact on revenues resulting from events in Japan, the company now expects revenues for fiscal 2011 will be in the range of $342-$347 million compared to prior guidance for revenues of $347-$352 million. Its outlook for gross margins of 64-65 percent and operating expenses of 57-59 percent of revenues for the full year remain unchanged
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SOURCE Volcano Corporation
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