Execution wise - can't ask for much more...
- Cardiac device maker Thoratec Corp (THOR) posted a higher-than-expected quarterly profit, as strong sales at its cardiovascular division propped up its revenue base, sending its shares up as much as 4 percent.
- For the first quarter, net income was $5.6 million, or 10 cents a share, compared with a net loss of $678,000, or 1 cent a share, a year ago. Excluding items, the company earned 22 cents a share that topped market estimates by 5 cents. (as always, as long as we exclude items each and every quarter the whole stock market is cheaper than it really is)
- Revenue rose 39 percent to $89.5 million, while analysts were expecting $82.9 million. (very few companies of any size are pushing out this sort of revenue growth)
- The company's cardiovascular division put in a good show with a 61 percent rise in sales. (this is about 60% of their sales - and growing like gangbusters)
- The company, however, said revenue at its International Technidyne Corp (ITC) unit were hurt by competitive pressure in its skin incision and professional ProTime businesses, among other things. (not their core business or where they are moving to)
- The company also backed its outlook for the year and said revenue at its ITC unit was likely to be flat to up in the low single digits.
- GAAP gross margin for the first quarter of 2009 was 60.4 percent versus 55.6 percent a year ago. Non-GAAP gross margin, which excludes share-based compensation expense and is described later in this press release, was 61.0 percent versus 56.3 percent a year ago. (nice growth year over year) The year-over-year increase in gross margin is primarily attributable to the increase in average selling prices associated with North America HeartMate II sales and worldwide HeartMate II volume. This was partially offset by lower margins at ITC, related primarily to geographic mix, competitive pricing pressure and unfavorable manufacturing variances.
- We also continued to expand the number of HeartMate II centers, adding four during the quarter," said Gary F. Burbach, president and chief executive officer.
[Feb 19, 2009: Thoratec Acquires Heartware]
[Feb 6, 2009: Thoratec Beats; Market Yawns]
[Dec 5, 2008: Thoratec with Positive Data]
[Oct 30, 2008: Thoratec Smashes Earnings; Somehow Guides Up]
[Aug 4, 2008: One for the Radar - Thoratec]
Long Thoratec in fund; no personal position