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Thoratec's CEO Discusses Q1 2012 Results - Earnings Call Transcript

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?

Gerhard F. Burbach

Thank you, Taylor, and good afternoon. Thoratec achieved a strong start to 2012 reflecting a healthy underlying market for LVAD therapy, particularly the destination therapy indication and continued progress in our worldwide market development and market leadership efforts for HeartMate II.

Our first quarter results highlighted by a 27% revenue increase were generated through strong performance across both HeartMate II and CentriMag, driven by all major segments of implanting centers in both the United States and Europe. But we don’t expect the same magnitude of growth to occur every quarter. We do believe that our first quarter results again point to a significant opportunity ahead in Destination Therapy. We remain firmly committed do investing in the development of this market as well as in our pipeline of exciting technologies to support strong growth from many years to come.

With respect to our financial results for the first quarter, Thoratec generated revenues of $126.8 million, a 27% increase over revenues of $99.5 million in the first quarter of 2011. In terms of geographic breakdown, we quarter revenues of $103.9 million in the U.S. versus $82.5 million in the prior year, an increase of 26%, while international revenues were $22.9 million versus $17 million a year-ago representing an increase of 35%.

Excluding the effects of foreign exchange, which was unfavorable by $0.5 million as well as acquisition related revenues, year-over-year international revenue growth was 23%. Earnings on a non-GAAP basis were $0.51 per share an increase of 50%. HeartMate revenues in the quarter were $111.7 million versus $87.3 million a year-ago, an increase of 28%. Strength in our HeartMate II franchise was balanced across all key geographies and I’ll provide more detail on the underlying drivers of this strength momentarily.

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