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8-K
ATRICURE, INC. filed this Form 8-K on 02/28/2019
Entire Document
 
Exhibit 99.1

 

 

Picture 1

Exhibit 99.1

 

For immediate release

February 28, 2019





AtriCure Reports Fourth Quarter and Full Year 2018 Financial Results

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2018 Worldwide revenue of $201.6 million – an increase of 15.4% year over year

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2018 U.S. revenue of $162.1 million – an increase of 17.2% year over year

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2018 International revenue of $39.5 million – an increase of 8.7% year over year



MASON, Ohio, February 28, 2019AtriCure, Inc.  (Nasdaq: ATRC), a leading innovator in treatments for atrial fibrillation (Afib) and related conditions, today announced fourth quarter and full year 2018 financial results.



“We are pleased with our fourth quarter performance, capping a year of strong, consistent revenue growth,” said Mike Carrel, President and Chief Executive Officer of AtriCure. “We are successfully building scalable infrastructure across the entire organization, positioning the company to efficiently expand and grow over the next decade. We remain committed to improving the lives of Afib patients globally, and we have created a strong foundation and culture based on this mission.”



Fourth Quarter 2018 Financial Results 

Revenue for the fourth quarter of 2018 was $52.9 million, an increase of $6.8 million or 14.8% (15.3% on a constant currency basis), compared to the fourth quarter of 2017. U.S. revenue increased 19.1% to $43.1 million, driven by increased sales across our key ablation and appendage management products. International revenue was $9.8 million, a decrease of $0.1 million or -0.9%  and an increase of 1.4%  on a constant currency basis, compared to the fourth quarter of 2017.



Gross profit for the fourth quarter of 2018 was $38.6 million compared to $32.7 million for the fourth quarter of 2017. Gross margin for the fourth quarter of 2018 increased to 73.0% compared to 71.0% in the fourth quarter of 2017, driven primarily by a higher concentration of higher margin sales in the United States and direct markets in Europe, and a lower contribution to revenue from lower margin sales in Asia and other distributor markets.

 

Operating expenses for the fourth quarter of 2018 increased 18.3%, or $6.4 million, compared to the fourth quarter of 2017. The increase in operating expenses was primarily due to increased costs associated with personnel resulting from additional head count and variable compensation, as well as research and development project spend and legal costs, partially offset by lower clinical trial, tradeshow and training costs. 



Loss from operations for the fourth quarter of 2018 was $2.6 million, compared to a loss of $2.1 million for the fourth quarter of 2017. Net loss per share was $0.09 for the fourth quarter of 2018 compared to $0.08 for the fourth quarter of 2017. The adjusted loss per share for the fourth quarter of 2018 was $0.21 compared to an adjusted loss per share for the fourth quarter of 2017 of $0.20. Adjusted loss per share is a non-GAAP measure which excludes the contingent consideration adjustment.



For the fourth quarter of 2018, adjusted EBITDA was positive  $0.3 million compared to an adjusted EBITDA loss of $0.3 million for the fourth quarter of 2017. Adjusted EBITDA is a non-GAAP measure.  



2018 Financial Results 

Revenue for 2018 was $201.6 million, an increase of $26.9 million or 15.4% (14.9% on a constant currency basis), compared to 2017 revenue. U.S. revenue increased 17.2% to $162.1 million, driven by growth across our open-heart ablation products and appendage management products. International revenue was $39.5 million, an increase of $3.2 million or 8.7% (6.1% on a constant currency basis). International revenue growth was driven primarily by increases in product sales in the United Kingdom, Germany, and Japan, partially offset by a decrease in sales in China.  

 

Gross profit for 2018 was $147.1 million compared to $126.2 million for 2017. Gross margin for 2018 increased to 73.0% compared to 72.2% for 2017.  

   

Loss from operations for 2018 was $17.1 million, compared to $25.0 million for 2017. Adjusted EBITDA was a loss of $2.7 million for 2018, compared to a loss of $5.3 million for 2017. Net loss per share was $0.62 for 2018 compared to $0.83 for 2017. The adjusted loss per share for 2018 was $0.94 compared to an adjusted loss per share of $0.96 for 2017.



2019 Financial Guidance

Revenue for 2019 is projected to be approximately $220 million to $228 million. Adjusted EBITDA, a non-GAAP measure, is projected to be positive, between $0 and $3 million for 2019. Net loss per share is projected to be in the range of $0.68 to $0.78.