This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Thoratec's CEO Discusses Q3 2011 Results - Earnings Call Transcript

Stocks in this article: THOR

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?

Gary Burbach

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.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs