(ABMD - Free Report
) , which manufactures heart device technologies, reported first quarter fiscal 2013 adjusted earnings per share of 8 cents, beating the Zacks Consensus Estimate of 3 cents and surpassing the year-ago loss of 11 cents.
Revenues soared 42% year over year to $38.8 million (a quarterly record), beating the Zacks Consensus Estimate of $37 million. Growth was led by solid sales of Impella heart pumps.
Globally, Impella sales jumped 56% year over year to $34.7 million in the first quarter. U.S. Impella sales spiked 61% to $33 million. Abiomed opened 34 new U.S. Impella 2.5 sites in the quarter to end with a total of 665 customer sites.
Gross margins increased to 80.8% from 78.5% a year ago. Income from operations was $3.6 million compared to an operating loss of $4.4 million.
Selling, general and administrative expenses were lower at 54% of sales versus 66.4% in the year-ago quarter. Research and Development expenses, as a percentage of sales, fell to 17.3% from 26.8%.
Abiomed exited the quarter with strong cash and cash equivalents and short-term marketable securities of $81.2 million, 37.4% higher than the previous year. The company has no debt.
The company raised the lower end of its revenue guidance based on record revenue growth and solid Impella sales. For fiscal 2013, Abiomed now forecasts revenues to grow 23% to 24% (earlier 20%–24%) to between $155 million and $157 million (earlier $152 million to $157 million). Global Impella sales are expected to increase more than 30%.
Abiomed is enjoying strong demand for its Impella products. Impella utilization continues to grow at a healthy pace, as is evident from the increasing number of patients being treated with the device.
The Impella cVAD device received the European CE mark in April and the Health Canada approval in June to launch the product in both nations. The company also announced the first human use of the Impella cVAD outside the U.S in April. The percutaneous heart pump can successfully pump roughly 4 liters of blood in one minute.
While we are upbeat about the prospects of Impella, we remain cautious about the intense competition and reimbursement risks. Abiomed faces competition from organizations developing permanent heart assist products, including Thoratec Corporation .