Volcano Corporation Announces Record Preliminary Fourth Quarter 2012 Revenues

Volcano Corporation Announces Record Preliminary Fourth Quarter 2012 Revenues


PR Newswire

SAN DIEGO, Jan. 7, 2013

SAN DIEGO, Jan. 7, 2013 /PRNewswire/ -- Volcano Corporation (Nasdaq: VOLC), a
leading developer and manufacturer of precision guided therapy tools designed
to enhance the diagnosis and treatment of coronary and peripheral vascular
disease, said today that it expects total revenues for the fourth quarter of
2012 will be approximately $102.5 million, bringing expected full year 2012
revenues to approximately $381.9 million.

Medical segment revenues in the fourth quarter of 2012 increased approximately
10 percent on a reported basis and 12 percent on a constant currency basis
versus the fourth quarter of 2011, driven by an increase in FFR (Fractional
Flow Reserve) disposable revenues of approximately 42 percent year-over-year
on a reported basis and 45 percent on a constant currency basis.

The expectations for revenues in the fourth quarter of 2012 reflect an
increase of approximately 10 percent on a reported basis and 12 percent on a
constant currency basis versus revenues of $92.7 million in the fourth quarter
a year ago. The expected revenues for all of 2012 reflect an increase of
approximately 11 percent on a reported basis and 12 percent on a constant
currency basis versus revenues of $343.5 million in 2011.

"The growth of our medical disposable business, which increased approximately
11 percent on a constant currency basis in the quarter, reflects the value of
our functional PCI market development strategies as healthcare providers
increasingly seek to document proof of necessity and treatment outcomes," said
Scott Huennekens, president and chief executive officer.

"We generated excellent growth in our FFR disposable business across all of
our key geographies, driven by data that demonstrate the use of FFR results in
improved patient outcomes as well as the more cost-effective delivery of
therapy. These gains were offset by the continued challenges of the
macroeconomic environment in the U.S. and Europe that negatively impacted PCI
activity," he added.

The company said it is providing the estimated revenues for 2012 in advance of
meetings with the investment community and its presentation at the 31^st
Annual J.P. Morgan Healthcare Conference. The company's presentation will
occur at 11 a.m., Pacific Standard Time (2 p.m., Eastern Standard Time),
Tuesday, January 8. A webcast of the presentation will be available through
the conference website at
and via the company's website at www.volcanocorp.com.

The company's complete fourth quarter and full year 2012 financial results and
guidance for 2013 will be provided in a press release, as well as a conference
call and publicly available webcast, in late February. Details regarding the
date of the earnings press release, conference call and webcast will be
provided in a subsequent press release.

About Volcano

Volcano Corporation is revolutionizing the medical device industry with a
broad suite of technologies that make imaging and therapy simpler, more
informative and less invasive. Our products empower physicians around the
world with a new generation of analytical tools that deliver more meaningful
information—using sound and light as the guiding elements. Founded in
cardiovascular care and expanding into other specialties, Volcano is changing
the assumption about what is possible in improving patient outcomes by
combining imaging and therapy together. For more information, visit the
company's website at www.volcanocorp.com.

Note Regarding Use of Non-GAAP Financial Measures

Volcano reports changes in revenue on a constant currency basis, which is a
non-GAAP financial measure. Volcano believes that investors' understanding of
the company's short-term and long-term financial trends is enhanced by taking
into consideration the impact of foreign currency translation on revenue. In
addition, Volcano's management uses results of operations before currency
translation to evaluate the operational performance of Volcano and as a basis
for strategic planning. Investors should consider these non-GAAP measures in
addition to, and not as a substitute for, or superior to, financial
performance measures prepared in accordance with U.S. GAAP.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. Any statements in
this press release regarding Volcano's business that are not historical facts
may be considered "forward-looking statements." Specifically, statements
concerning Volcano's expected revenues, revenue growth and financial results
for the fourth quarter and year ended December 31, 2012, are forward-looking
statements involving risks and uncertainties. These statements reflect
estimates based on informationavailable at this time and are being made prior
to the completion of Volcano's accounting close procedures, including an audit
by its independent accountants, for the year ended December 31, 2012, and
could therefore differ from the actual reported results in Volcano's Form
10-K, which the company expects to file in February 2013. Forward-looking
statements are based on management's current expectations and are subject to
risks and uncertainties that may cause Volcano's actual results to differ
materially and adversely from statements contained herein. Some of the
potential risks and uncertainties that could cause actual results to differ
include the risk that Volcano's revenue, expense, earnings, earnings per
share, margin or tax rate projections may turn out to be inaccurate or Volcano
may encounter unanticipated difficult in achieving those projections; global
and regional macroeconomic conditions, generally, and in the medical device
and telecom industries specifically; currency exchange rate fluctuations; the
effect of competitive factors and the company's reactions to those factors;
purchasing decisions with respect to the company's products; the pace and
extent of market adoption of the company's products and technologies;
uncertainty in the process of obtaining regulatory approval or clearance for
Volcano's products or devices; the success of Volcano's growth strategies;
risks associated with Volcano's international operations; timing and
achievement of product development milestones; outcome of ongoing or future
litigation; the impact and benefits of market development; our ability to
project our intellectual property; dependence upon third parties; unexpected
new data, safety and technical issues; market conditions and other risks
inherent to medical and/or telecom device development and commercialization.
These and additional risks and uncertainties are more fully described in
Volcano's filings made with the Securities and Exchange Commission, including
our 424(b)(2) Prospectus Supplement filed on December 5, 2012, and other
filings made with the Securities and Exchange Commission. Undue reliance
should not be placed on forward-looking statements, which speak only as of the
date they are made. Volcano disclaims any obligation to update any
forward-looking statements to reflect new information, events or circumstances
after the date they are made, or to reflect the occurrence of unanticipated

(in millions)
                    Three Months    Percentage                      Constant
                    Ended           Change     Currency Impact    Currency
                    December 31,                                    Percentage
                    2012     2011   2011 to     Dollar  Percentage  Change
Medical segment:
Consoles            $ 12.2  $11.5  5      %    $(0.1)  (2)    %    7      %
single-procedure    52.2     53.6   (3)         (1.0)   (2)         (1)
single-procedure    27.2     19.1   42          (0.5)   (3)         45
Other               8.4      7.0    21          (0.2)   (1)         22
Sub-total medical   $100.0   $91.2  10          $(1.8)  (2)         12
Industrial segment  $       1.5    63     %    $  -  -      %    63     %
Total               $102.5   $92.7  10          $(1.8)  (2)         12

(in millions)
                  Year Ended       Percentage  Currency Impact      Constant
                  December 31,     Change                          Currency
                  2012     2011    2011 to     Dollar   Percentage  Percentage
                                   2012                             Change
Medical segment:
Consoles          $ 40.7  $       (1)    %    $(0.6)   (2)    %    1      %
single-procedure  205.9    201.0   2           (1.2)    (1)         3
single-procedure  94.9     67.0    41          (2.4)    (4)         45
Other             29.7     23.5    26          (0.2)    (1)         27
Sub-total medical $371.2   $332.5  12          $(4.4)   (1)         13
Industrial        $ 10.7  11.0    (3)    %    $      -      %    (3)    %
segment                                        -
Total             $381.9   $343.5  11          $(4.4)   (1)         12

SOURCE Volcano Corporation

Website: http://www.volcanocorp.com
Contact: John Dahldorf, Chief Financial Officer, Volcano Corp.,
+1-858-720-4020; or Neal Rosen, +1-650-458-3014
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