Volcano Corporation Provides Additional Guidance For 2013

          Volcano Corporation Provides Additional Guidance For 2013

PR Newswire

SAN DIEGO, Feb. 21, 2013

SAN DIEGO, Feb. 21, 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, is providing additional guidance for 2013 on an as reported basis to
augment guidance provided on a constant currency basis in its fourth quarter
2012 earnings news release earlier today.

On an as reported basis, based on foreign currency exchange rates as of
February 21, 2013, the company expects revenues will be in the range of
$406-$412 million in 2013. Earlier today, the company provided guidance for
revenues in 2013 in the range of $422-$428 million on a constant currency
basis.

On an as reported basis, Volcano expects gross margins will be in the range of
65.0-65.5 percent and operating expenses will be 62-63 percent of revenues. On
a reported basis, the company expects a net loss on a GAAP basis of
$0.19-$0.23 per share, including an expected tax benefit of approximately $4.8
million. On a reported basis, the company expects non-GAAP net income of
$0.08-$0.11 per diluted share in 2013. Non-GAAP results exclude
acquisition-related expenses, amortization of intangibles and non-cash
interest expense, and assume an effective tax rate of 38 percent for the GAAP
to non-GAAP adjustments. The company expects weighted average basic shares in
2013 will be approximately 54.4 million shares and approximately 56.2 million
shares on a diluted basis.

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

The presentation of non-GAAP financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. The company uses
non-GAAP financial measures for financial and operational decision making and
as a means to compare period-to-period results. The company believes that they
provide useful information about operating results, enhance the overall
understanding of operating results and future prospects, and allow for greater
transparency with respect to key metrics used by management in its financial
and operational decision making.

Constant Currency Basis Revenue Changes: 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 results 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.

Volcano reports its expectations of earnings per share performance excluding
certain expenses described below; for additional details please see the
"Reconciliation of GAAP to non-GAAP EPS Guidance" table in this press release.
This accompanying table has more details on the GAAP financial measures that
are most directly comparable to non-GAAP financial measures and the related
reconciliations between these financial measures.

Exclusion of Acquisition-related Expenses: Volcano excludes
acquisition-related expenses because it does not consider these
acquisition-related costs and adjustments to be related to the organic
continuing operations of the acquired businesses and are generally not
relevant to assessing or estimating the long-term performance of the acquired
assets. In addition, the size, complexity and/or volume of past acquisitions,
which often drive the magnitude of acquisition-related costs, may not be
indicative of the size, complexity and/or volume of future acquisitions.

Exclusion of Amortization of Intangibles: Volcano excludes amortization of
intangibles because it is a non-cash expense relating primarily to
acquisitions. At the time of an acquisition, the intangible assets of the
acquired company, such as technology and supplier agreements, are valued and
amortized over their estimated lives. Volcano believes that since intangibles
represent costs incurred by the acquired company to build value prior to
acquisition, Volcano management eliminates the impact of the amortization when
evaluating its current operating performance.

Exclusion of Non-cash Interest Expense: In addition to disclosing the
financial statement impact of the Financial Accounting Standards Board
authoritative guidance for convertible debt accounting, Volcano management
believes that investors may find it useful to consider excluding the impact of
this authoritative guidance because it is non-cash in nature, may provide
meaningful supplemental information regarding elements of the company's
borrowing costs in order to properly understand its operational performance
and liquidity, and facilitates comparisons to competitors' operating results.

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," including statements regarding
Volcano's growth and other strategies and ability to execute on those
strategies, competitive positioning, target markets, development of its base
business and pipeline, benefits from recent acquisitions, benefits from its
products and technologies and financial guidance. 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 other
projections may turn out to be inaccurate or Volcano may encounter
unanticipated difficultly 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 reaction 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 and other strategies including
integration of recently-acquired businesses and our ability to integrate
businesses from any future acquisitions; risks associated with Volcano's
international operations; timing and achievement of product development
milestones; outcome of ongoing or future litigation, investigations and
claims; the impact and benefits of market development and the related size of
Volcano's addressable markets; our ability to protect 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 prospectus
supplement on Form 424b2, and other filings made with the Securities and
Exchange Commission. Additional information will also be set forth in our Form
10-K that will be filed for the year ended December 31, 2012, which should be
read in conjunction with these financial results. 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 events.

VOLCANO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP EPS GUIDANCE
(in thousands, except per share data)
(Unaudited)
                                                  2013
                                                  Guidance Range
                                                  From           To
GAAP net loss per share—basic                   $ (0.23)      $ (0.19)
GAAP net loss per share—diluted                 $ (0.22)      $ (0.19)
 Acquisition related items                      0.05           0.05
 Amortization of intangibles                    0.04           0.04
 Non-cash interest expense                      0.21           0.21
Non-GAAP net income per share—diluted           $  0.08      $  0.11
Weighted average shares outstanding—basic       54,400         54,400
Weighted average shares outstanding—diluted     56,200         56,200
Note: Effective tax rate of 38% applied to non-GAAP adjustments

SOURCE Volcano Corporation

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