HeartWare International Reports $49.2 Million In First Quarter 2013 Revenue;
87% Increase From First Quarter Of 2012
- U.S. Revenues of $26.2 million, from $6.4 million in First Quarter of 2012;
Reflecting First Complete Quarter of Commercialization in U.S. -
- Conference call today at 5:00 p.m. U.S. E.T. -
FRAMINGHAM, Mass. and SYDNEY, April 29, 2013
FRAMINGHAM, Mass. and SYDNEY, April 29, 2013 /PRNewswire/ -- HeartWare
International, Inc. (NASDAQ: HTWR - ASX: HIN), a leading innovator of less
invasive, miniaturized circulatory support technologies that are
revolutionizing the treatment of advanced heart failure, today announced
revenue of $49.2 million for the first quarter ended March 31, 2013, an 87%
increase compared to $26.4 million in revenue for the same period of 2012.
"Our results for the first quarter reflect positive initial trends in the
commercial launch of the HeartWare^® Ventricular Assist System in the U.S.,
following approval from the Food and Drug Administration (FDA) in November
2012, and continued strong support from our international customers,"
explained Doug Godshall, President and Chief Executive Officer. "During the
first quarter of 2013, 482 HVAD^® pumps were sold globally, an increase from
298 units in the first quarter of 2012 and more than our previous high
quarterly total of 345 units in the fourth quarter of 2012."
During the first quarter of 2013, U.S. revenue, which reflects the Company's
first full quarter of U.S. commercialization, was $26.2 million, an increase
of approximately 300% from $6.4 million in the first quarter of 2012. Revenue
from international markets, generated through the sale of 244 units, was $23.1
million, an increase of approximately 16% from $19.9 million in the first
quarter of 2012. Currency fluctuations decreased revenue by approximately 25
basis points in the first quarter compared to the same period in 2012.
"It has been quite gratifying to see such strong interest from new hospital
centers thus far in our commercial launch," added Mr. Godshall. "Our team has
been working diligently to expedite the training of additional hospitals in
the U.S., and in the five months since FDA approval, 27 new U.S. sites have
been trained. In total, HeartWare now has more than 190 customers around the
Total operating expenses for the first quarter of 2013 were $38.6 million, as
compared to $32.7 million in the first quarter of 2012.
Research and development expense was $22.1 million for the first quarter of
2013, as compared to $20.0 million in the same period of 2012. Development
costs are primarily attributable to clinical trial costs and research and
development costs related to advancing HeartWare's pipeline technologies,
including the MVAD^® platform and a fully implantable system, as well as other
early research initiatives.
Selling, general and administrative expenses were $16.5 million in the first
quarter of 2013, compared to $12.7 million in the first quarter of 2012. The
increase in selling, general and administrative expenses reflects expansion of
sales and marketing activities, particularly in the United States, an overall
increase in corporate infrastructure to support the Company's rapid growth,
and implementation of the 2.3% excise tax on the U.S. sales of certain medical
devices which became effective January 1, 2013.
Net loss for the first quarter of 2013 was $13.0 million, or a $0.87 loss per
basic and diluted share, compared to a $18.9 million net loss, or a loss of
$1.33 per basic and diluted share, in the first quarter of 2012.
At March 31, 2013, the Company had $228.9 million of cash, cash equivalents
HeartWare will host a conference call on Monday, April 29, 2013 at 5:00 p.m.,
U.S. Eastern Daylight Time to discuss the Company's financial results,
highlights from the first quarter and business outlook. The call may be
accessed by dialing 1-877-941-4774 five minutes prior to the scheduled start
time and referencing "HeartWare." For callers outside the U.S., please dial
A live webcast of the call will also be available at the Company's website
(www.heartware.com) by selecting "HeartWare First Quarter 2013 Conference
Call" under the section titled "Corporate Presentations" on the Home Page. A
replay of the conference call will be available through the above weblink
immediately following completion of the call.
About HeartWare International
HeartWare International develops and manufactures miniaturized implantable
heart pumps, or ventricular assist devices, to treat Class IIIB / IV patients
suffering from advanced heart failure. The HeartWare^® Ventricular Assist
System features the HVAD^® pump, a small full-support circulatory assist
device designed to be implanted next to the heart, avoiding the abdominal
surgery generally required to implant competing devices. The HeartWare System
is approved in the United States for the intended use as a bridge to cardiac
transplantation in patients who are at risk of death from refractory end-stage
left ventricular heart failure, has received CE Marking in the European Union
and has been used to treat patients in 30 international countries. The device
is also currently the subject of a U.S. clinical trial for destination
therapy. For additional information, please visit the Company's website at
HeartWare International, Inc. is a member of the Russell 2000^® and its
securities are publicly traded on The NASDAQ Stock Market and the Australian
HEARTWARE, HVAD, MVAD and HeartWare logos are registered trademarks of
This announcement contains forward-looking statements that are based on
management's beliefs, assumptions and expectations and on information
currently available to management. All statements that address operating
performance, events or developments that we expect or anticipate will occur in
the future are forward-looking statements, including without limitation our
expectations with respect to the commercial launch of the HeartWare^®
Ventricular Assist System in the U.S., continued support from international
customers, progress of clinical trials and post-approval studies, regulatory
status, research and development activities and commercialization strategies.
Management believes that these forward-looking statements are reasonable as
and when made. However, you should not place undue reliance on
forward-looking statements because they speak only as of the date when made.
HeartWare does not assume any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. HeartWare may not actually achieve the plans,
projections or expectations disclosed in forward-looking statements, and
actual results, developments or events could differ materially from those
disclosed in the forward-looking statements. Forward-looking statements are
subject to a number of risks and uncertainties, including without limitation
those described in Part I, Item 1A. "Risk Factors" in HeartWare's Annual
Report on Form 10-K filed with the Securities and Exchange Commission.
HeartWare may update risk factors from time to time in Part II, Item 1A "Risk
Factors" in Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, or
other filings with the Securities and Exchange Commission.
For further information:
HeartWare International, Inc.
Phone: +1 508 739 0864
- Tables to Follow-
HEARTWARE INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
Revenue, net $ 49,239 $ 26,346
Cost of revenue 18,780 10,828
Gross profit 30,459 15,518
Selling, general and administrative 16,488 12,716
Research and development 22,142 20,007
Total operating expenses 38,630 32,723
Loss from operations (8,171) (17,205)
Other expense, net (4,788) (1,640)
Net loss $ (12,959) $ (18,845)
Net loss per common share — basic and diluted $ (0.87) $ (1.33)
Weighted average shares outstanding — basic and 14,860 14,121
HEARTWARE INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
Cash and cash equivalents $ 208,878 $ 85,921
Short-term investments, net 20,020 16,887
Accounts receivable, net 32,328 25,225
Inventories, net 36,208 38,443
Prepaid expenses and other current assets 6,642 5,925
Total current assets 304,076 172,401
Property, plant and equipment, net 19,311 19,380
Other assets, net 14,660 14,718
Total assets $ 338,047 $ 206,499
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 12,969 $ 12,024
Other accrued liabilities 17,218 22,020
Total current liabilities 30,187 34,044
Convertible senior notes, net 101,942 100,315
Other long-term liabilities 3,915 3,929
Stockholders' equity 202,003 68,211
Total liabilities and stockholders' equity $ 338,047 $ 206,499
SOURCE HeartWare International, Inc.
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