We caution you that these statements are only predictions and that actual results may differ materially. We also alert you to the risks contained in the documents we file with the Securities and Exchange Commission, such as our annual and quarterly reports on Forms 10-K and 10-Q. We do not undertake any obligation to update or correct any forward-looking statements. Gary?
Thank you, Taylor, and good afternoon, everyone. Thoratec’s third quarter was highlighted by continued double-digit growth year-over-year in both pump units and revenues, strong new center activity, gross margin performance above our expectations and continued execution on our product and market development strategies. We experienced a sequential decline from our strong second quarter revenue performance and based on a few factors that we will described later, we are reducing our full-year revenue outlook by 1% to 2%. That said, we believe that the VAD market remains healthy and on track for sustained longer-term growth.
Additionally, based on our strong profitability results year-to-date, we are raising our 2011 guidance for gross margin and earnings per share. With respect to our financial results for the quarter, Thoratec generated revenues of $102.6 million, a 13% increase over revenues of $91.0 million in the third quarter of 2010. This increase was driven by a strong growth in pump revenues of 15%, with non-pump revenues continuing to expand at a slower pace due largely to the comparison against last year’s HeartMate external peripherals upgrade cycle.Revenues moderated on a sequential basis reflecting the seasonality we typically see in the third quarter as well as the particularly strong performance in the second quarter of this year. In terms of geographic breakdown for the third quarter, we recorded revenues of $83.9 million in the United States versus $76.4 million in the prior year, an increase 10%. While international revenues were $18.7 million versus $14.6 million a year ago, representing an increase of 28% or 8% excluding both the positive $1.5 million impact of FX versus the third quarter of 2010 as well as the incremental international revenues associated with the Levitronix Medical acquisition.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV