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Thoratec® Reports First Quarter 2013 Results

                 Thoratec® Reports First Quarter 2013 Results

- Revenue of $117.7 million for the first quarter of 2013

- GAAP Net Income per Diluted Share of $0.31, and Non-GAAP Net Income per
Diluted Share of $0.41

- Company reaffirms full-year 2013 guidance for revenue and earnings per share

PR Newswire

PLEASANTON, Calif., May 2, 2013

PLEASANTON, Calif., May 2, 2013 /PRNewswire/ -- Thoratec Corporation (NASDAQ:
THOR), a world leader in device-based mechanical circulatory support therapies
to save, support and restore failing hearts, today reported its financial
results for the first quarter of 2013.

For the quarter ended March 30, 2013, Thoratec reported revenues of $117.7
million, a 7 percent decrease versus revenues of $126.8 million in the same
period a year ago. Net income on a GAAP basis was $18.2 million, or $0.31 per
diluted share, compared to GAAP net income of $25.5 million, or $0.43 per
diluted share, in the same period last year. Non-GAAP net income, which is
described later in this press release, was $24.0 million, or $0.41 per diluted
share in the first quarter of 2013, compared to non-GAAP net income of $30.6
million, or $0.51 per diluted share, in the first quarter of 2012.

"Although we faced some expected challenges in the first quarter, our team is
responding well to our near-term priorities while also staying focused on key
longer-term growth drivers, giving us confidence in Thoratec's outlook for
2013 and beyond," said Gary Burbach, President and Chief Executive Officer.

Thoratec provided several updates with respect to the HeartMate II® franchise.
In March, the company initiated a commercial launch in Europe of the Pocket
Controller^™, a next-generation device that provides important patient safety
and quality-of-life benefits. The Pocket Controller is currently awaiting FDA
approval in the U.S. Additionally, on April 1^st, Japan's Ministry of Health,
Labour, and Welfare issued reimbursement approval for HeartMate II for the
Bridge-to-Transplantation indication, allowing the company and its
distribution partner to commence a commercial launch in Japan.

Lastly, at the International Society for Heart and Lung Transplantation
(ISHLT) annual meeting, Dr. Ulrich Jorde, medical director of the mechanical
circulatory support program at New York-Presbyterian Hospital/Columbia,
presented two-year follow-up results from the Destination Therapy
post-approval study. The results showed a trend toward improved survival and
reduced adverse event rates in the post-approval experience compared to the
pivotal clinical trial, along with a six-day reduction in median length of
hospital stay following surgery. According to Dr. Jorde, "Particularly for
patients who do not have the option of heart transplantation, we are seeing
results in the broader commercial setting that confirm the clinical trial
results, with continued excellent outcomes and good quality of life. The
results of the HeartMate II trial and its successful implementation in
clinical practice set the bar for all destination therapy trials in the
future."

"We continue to achieve important milestones in terms of product and market
development for our established commercial platforms," Burbach commented.
"Additionally, we are focused on our longer-term initiatives and remain on
track to begin pivotal clinical trials later this year for both HeartMate
III^™ and HeartMate PHP^™."

First Quarter of 2013 Financial Results

Thoratec reported revenues of $117.7 million in the first quarter of 2013, a
decrease of 7 percent compared to the same quarter last year. The HeartMate
product line contributed $102.9 million, a decrease of 8 percent, while the
CentriMag product line contributed $10.4 million, an increase of 20 percent.
The PVAD^™ and IVAD^™ product line contributed $3.8 million, a decrease of 34
percent.

GAAP gross margin in the first quarter of 2013 was 70.2 percent compared to
69.3 percent in the same quarter last year. The increase in GAAP gross margin
was due primarily to manufacturing efficiencies, lower warranty and
amortization expenses, and the absence of fair value inventory adjustments in
2013, in part offset by the U.S. medical device excise tax, which we recorded
for the first time in the first quarter of 2013. Non-GAAP gross margin,
described later in this press release, was 72.1 percent compared to 71.6
percent in the same quarter last year.

GAAP operating expenses in the first quarter of 2013 were $59.3 million
compared to $50.9 million in the same quarter last year. The increase in GAAP
operating expenses was due primarily to product and market development
initiatives. Non-GAAP operating expenses, described later in this press
release, were $52.8 million compared to $45.7 million in the same quarter last
year.

The company's GAAP effective tax rate in the first quarter of 2013 was 25.9
percent versus 32.4 percent a year ago. The non-GAAP tax rate, which is
described later in this press release, was 27.9 percent versus 33.1 percent in
the same period last year.

Cash and investments as of March 30, 2013 were $262.1 million, compared to
$260.4 million as of December 29, 2012. During the quarter, the company
completed a $75.0 million accelerated share repurchase program, which retired
a total of 2.1 million shares of common stock over the duration of the
program.

GUIDANCE FOR FISCAL 2013

The following statements are based on current expectations. These statements
are forward-looking and actual results may differ materially. For a more
detailed discussion of forward-looking statements, please see the additional
information below.

The company reaffirmed existing guidance for the full year for revenues as
well as net income per diluted share on both a GAAP and non-GAAP basis.
Revenues are expected to be in the range of $490 million to $510 million. GAAP
net income per diluted share is expected to be in the range of $1.32 to $1.42,
and non-GAAP net income per diluted share is expected to be in the range of
$1.76 to $1.86.

CONFERENCE CALL/WEBCAST INFORMATION

Thoratec will hold a conference call to discuss its financial results and
operating activities for all interested parties at 1:30 p.m., Pacific Daylight
Time (4:30 p.m., Eastern Daylight Time), today. The teleconference can be
accessed by calling (719) 325-2131, passcode 4385905. Please dial in 10-15
minutes prior to the beginning of the call. The webcast will be available via
the Internet at http://www.thoratec.com. A replay of the conference call will
be available through Thursday, May 9, via http://www.thoratec.com or by
telephone at (719) 457-0820, passcode 4385905.

GAAP TO NON-GAAP RECONCILIATION

Thoratec management evaluates and makes operating decisions using various
measures. These measures are generally based on revenues generated by the
company's products and certain costs of producing those revenues, such as
costs of product sales, research and development and selling, general and
administrative expenses. We use the following measures, which are not
calculated in accordance with Generally Accepted Accounting Principles
("GAAP"): non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating
expenses, , non-GAAP tax rate, non-GAAP net income, non-GAAP net income per
diluted share and non-GAAP shares used to compute diluted net income per
share. These are non-GAAP financial measures under Section 101 of Regulation G
under the Securities Exchange Act of 1934, as amended. These non-GAAP
financial measures are calculated by excluding certain GAAP financial items
that we believe have less significance to the day-to-day operation of our
business. The company has outlined below the type and scope of these
exclusions and the limitations on the use of the non-GAAP financial measures
as a result of these exclusions.

Management uses these non-GAAP financial measures for financial and
operational decision making, including in the determination of employee annual
cash incentive compensation, as a means to evaluate period-to-period
comparisons, as well as comparisons to our competitors' operating results.
Management also uses this information internally for forecasting and
budgeting, as it believes that the measures are indicative of Thoratec core
operating results. Management also believes that non-GAAP financial measures
provide useful supplemental information to management and investors regarding
the performance of the company's business operations, provide a greater
transparency with respect to key metrics used by management in its decision
making, facilitate comparisons of results for current periods and guidance for
future periods with our historical operating results, and assist in analyzing
future trends.

Non-GAAP net income consists of GAAP net income, excluding, as applicable, the
tax effected impact of share-based compensation expense, the amortization of
purchased intangible assets, Levitronix Medical fair market value (FMV)
inventory adjustments related to the acquisition.

Non-GAAP net income per diluted share is defined as non-GAAP net income
divided by the weighted average number of shares on a fully-diluted basis.

Non-GAAP shares used to compute diluted net income per share consists of GAAP
shares used to compute diluted net income per share adjusted for any
exclusions made in conjunction with the application of the two-class method
for calculating net income per share.

Non-GAAP gross profit and gross margin consist of GAAP gross profit and gross
margin excluding share-based compensation expense, the amortization of
purchased intangible assets, and Levitronix Medical FMV inventory adjustments
related to the acquisition.

Non-GAAP operating expenses consist of GAAP operating expenses excluding
share-based compensation expense and amortization of purchased intangible
assets.

Non-GAAP tax expense consists of the GAAP tax expense adjusted for the tax
effect of the adjustments from GAAP net income to non-GAAP net income.

Management believes that it is useful in measuring Thoratec's operations to
exclude the amortization of purchased intangible assets. These costs are
primarily fixed at the time of an acquisition and, unlike other fixed costs
that result from ordinary operations, are the result of infrequent and
irregular events.

Because of varying valuation methodologies, subjective assumptions and the
variety of award types that companies can use, Thoratec management believes
that providing non-GAAP financial measures that exclude share-based
compensation allow investors to compare Thoratec's recurring core business
operating results to those of other companies and over multiple periods. The
exclusion also enhances investors' ability to review Thoratec's business from
the same perspective as Thoratec management, which believes that share-based
compensation expense is not directly attributable to the underlying
performance of the company's business operations.

To enable investors to compare Thoratec's recurring core business operating
results to those of other companies and over multiple periods, Thoratec has
excluded Levitronix Medical FMV inventory adjustments related to the
acquisition as they are infrequent in nature.

There are a number of limitations related to the use of non-GAAP financial
measures. First, non-GAAP financial measures exclude some costs, namely
share-based compensation, that are recurring expenses. Second, share-based
compensation is part of an employee's compensation package and as such may be
useful for investors to consider. Third, the components of costs that we
exclude in our non-GAAP financial measuresmay differ from components that our
peer companies exclude when they report their results from operations.

Non-GAAP financial measures should not be considered as a substitute for
measures of financial performance in accordance with GAAP. However, these
measures may provide additional insight into Thoratec's financial results.
Investors and potential investors are strongly encouraged to review the
reconciliation of non-GAAP financial measures contained within this press
release with their most directly comparable GAAP financial results and not to
rely on any single financial measure to evaluate our business.

The reconciliations of the forward looking non-GAAP financial measures to the
most directly comparable GAAP financial measures in the tables below include
all information reasonably available to Thoratec at the date of this press
release. These tables include adjustments that we can reasonably predict.
Events that could cause the reconciliation to change include acquisitions and
divestitures of business, goodwill and other asset impairments and sales of
marketable equity securities.

The following table includes the GAAP income statement for the three months
ended March 30, 2013 and March 31, 2012:

THORATEC CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except for per share data)
                                              Three Months Ended
                                              March 30, 2013  March 31, 2012
Product sales                                 $ 117,725       $ 126,769
Cost of product sales                         35,073          38,887
Gross profit                                  82,652          87,882
Operating expenses:
Selling, general and administrative           34,745          31,201
Research and development                      24,513          19,696
Total operating expenses                      59,258          50,897
Income from operations                        23,394          36,985
Other income and (expense):
Interest expense                              (4)             (3)
Interest income and other                     1,117           734
Income before income taxes                    24,507          37,716
Income tax expense                            (6,337)         (12,230)
Net income                                    $ 18,170        $ 25,486
Net income per share- Basic:                  $ 0.32          $ 0.44
Net income per share- Diluted:                $ 0.31          $ 0.43
Shares used to compute net income per share:
Basic                                         57,486          58,438
Diluted                                       58,507          59,382

The following table presents our quarterly revenues by source for the first
quarter of 2013 and the full year 2012:

THORATEC CORPORATION
Quarterly Revenue Analysis
(Unaudited)
(in millions)
                        Three Months Ended
                        March      December   September 29,  June     March
                        30, 2013  29, 2012  2012            30,     31,
                                                              2012     2012
Revenue by Product Line
HeartMate               $ 102.9    $ 110.8    $ 105.9         $ 106.2  $ 111.7
PVAD & IVAD             3.8        5.6        3.8             3.8      5.8
CentriMag (1)           10.4       11.5       7.5             8.0      8.7
Other                   0.6        0.6        0.6             0.6      0.6
Total                   $ 117.7    $ 128.5    $ 117.8         $ 118.6  $ 126.8
Revenue by Category
Pump                    $ 84.3     $ 93.0     $ 85.0          $ 85.7   $ 92.6
Non-Pump                32.8       34.9       32.2            32.3     33.6
Other                   0.6        0.6        0.6             0.6      0.6
Total                   $ 117.7    $ 128.5    $ 117.8         $ 118.6  $ 126.8
Revenue by Geography
United States           $ 92.3     $ 102.0    $ 97.5          $ 97.1   $ 103.9
International           25.4       26.5       20.3            21.5     22.9
Total                   $ 117.7    $ 128.5    $ 117.8         $ 118.6  $ 126.8

(1) CentriMag includes PediMag/PediVAS® sales

The following table presents our quarterly pump units by geography for the
first quarter of 2013 and the full year 2012:

THORATEC CORPORATION
Quarterly Pump Units
(Unaudited)
                    Three months ended
                    March 30,  December 29,   September 29,  June     March
Units by Geography  2013       2012           2012           30,      31, 2012
                                                             2012
United States       716        812            781            773      838
International       219        254            208            212      219
Total (1)           935        1,066          989            985      1,057

(1) Excludes CentriMag and PediMag/PediVAS units

The following table reconciles the specific items excluded from GAAP net
income in the calculation of non-GAAP net income and diluted net income per
share for the periods shown below:

THORATEC CORPORATION
Reconciliation of GAAP to Non-GAAP Net Income
(Unaudited)
(in thousands, except for per share data)
                                                Three Months Ended
Net income reconciliation                       March 30, 2013  March 31, 2012
Net income on a GAAP basis                      $ 18,170        $ 25,486
Share-based compensation expense:
- Cost of product sales                         571             404
- Selling, general and administrative           3,683           2,979
- Research and development                      1,913           1,516
Amortization of purchased intangibles:
- Cost of product sales                         1,714           2,072
- Selling, general and administrative           751             602
- Research and development                      82              82
Levitronix Medical FMV inventory adjustments    -               355
Income tax effect of non-GAAP adjustments       (2,929)         (2,895)
Net income on a non-GAAP basis                  $ 23,955        $ 30,601
                                                Three Months Ended
Diluted net income per share reconciliation     March 30, 2013  March 31, 2012
Diluted net income per share on a GAAP basis    $ 0.31          $ 0.43
Share-based compensation expense:
- Cost of product sales                         0.01            0.01
- Selling, general and administrative           0.07            0.05
- Research and development                      0.03            0.02
Amortization of purchased intangibles:
- Cost of product sales                         0.03            0.03
- Selling, general and administrative           0.01            0.01
- Research and development                      0.00            0.00
Levitronix Medical FMV inventory adjustments    -               0.01
Income tax effect of non-GAAP adjustments       (0.05)          (0.05)
Diluted net income per share on a non-GAAP      $ 0.41          $ 0.51
basis
                                                Three Months Ended
                                                March 30, 2013  March 31, 2012
Shares used to compute diluted net income per
share reconciliation
Shares used in calculation of diluted net       58,507          59,382
income per share -- GAAP
Weighted average unvested restricted stock      -               46
awards (1)
Shares used in calculation of diluted net       58,507          59,428
income per share -- non-GAAP

    The company adopted the two-class method in calculating net income per
(1) share on a GAAP basis, which excludes the weighted average unvested
    restricted stock awards outstanding of 46,000 for the three months ended
    March 31, 2012.

The following table reconciles the specific items excluded from GAAP gross
profit and gross margin in the calculation of non-GAAP gross profit and gross
margin for the periods shown below:

THORATEC CORPORATION
Reconciliation of GAAP to Non-GAAP Gross Profit
(Unaudited)
(in thousands)
                                     Three Months Ended
                                     March 30, 2013       March 31, 2012
Gross profit on a GAAP basis         $ 82,652       70.2% $ 87,882       69.3%
Share-based compensation expense     571                  404
Amortization of purchased            1,714                2,072
intangibles
Levitronix Medical FMV inventory     -                    355
adjustments
Gross profit on a non-GAAP basis     $ 84,937       72.1% $ 90,713       71.6%

The following table reconciles the specific items excluded from GAAP operating
expenses in the calculation of non-GAAP operating expenses for the periods
shown below:

THORATEC CORPORATION
Reconciliation of GAAP to Non-GAAP Operating Expenses
(Unaudited)
(in thousands)
                                        Three Months Ended
                                        March 30, 2013  March 31, 2012
Operating expenses on a GAAP basis      $ 59,258        $ 50,897
Share-based compensation expense:
- Selling, general and administrative   (3,683)         (2,979)
- Research and development              (1,913)         (1,516)
Amortization of purchased intangibles:
- Selling, general and administrative   (751)           (602)
- Research and development              (82)            (82)
Operating expenses on a non-GAAP basis  $ 52,829        $ 45,718

The following table reconciles the GAAP tax expense adjusted for the tax
effect of the adjustments from GAAP net income to non-GAAP net income:

THORATEC CORPORATION
Reconciliation of GAAP to Non-GAAP Tax Expense
(Unaudited)
(in thousands)
                                     Three Months Ended
                                     March 30, 2013       March 31, 2012
Tax expense on a GAAP basis          $ 6,337        25.9% $ 12,230       32.4%
Share-based compensation expense     2,614                2,008
Amortization of purchased            895                  1,012
intangibles
Excess compensation limitations and  (580)                (267)
other
Levitronix Medical FMV inventory     -                    142
adjustments
Tax expense on a non-GAAP basis      $ 9,266        27.9% $ 15,125       33.1%

The following table reconciles the guidance on a GAAP basis and non-GAAP basis
for the periods shown below:

THORATEC CORPORATION
Reconciliation of GAAP to Non-GAAP Forward-Looking Guidance
(Unaudited)
(in thousands, except for per share data)
Net income per diluted share reconciliation    For the Fiscal Year Ended 2013
                                               From               To
Net income from continuing operations per      $ 1.32             $ 1.42
diluted share on a GAAP basis
Share-based compensation expense               0.32               0.31
Amortization of purchased intangibles          0.13               0.13
Tax rate effect on Non-GAAP earnings           (0.01)             -
Net income from continuing operations per      $ 1.76             $ 1.86
diluted share on a Non-GAAP basis
Shares used in calculation of net income per   59,000             59,000
diluted share - GAAP and Non-GAAP

About Thoratec

Thoratec is the world leader in mechanical circulatory support with the
broadest product portfolio to treat the full range of clinical needs for
patients suffering from advanced heart failure. The company's products include
the HeartMate LVAS and Thoratec VAD, with more than 20,000 devices implanted
in patients suffering from heart failure. Thoratec also manufactures and
markets the CentriMag and PediMag / PediVAS product lines. Thoratec is
headquartered in Pleasanton, California. For more information, visit
www.thoratec.com.

Thoratec, the Thoratec logo, HeartMate and HeartMate II are registered
trademarks of Thoratec Corporation and HeartMate III, HeartMate PHP and IVAD
are trademarks of Thoratec Corporation. CentriMag and PediMag are registered
trademarks of Thoratec LLC, and PediVAS is a registered trademark of Thoratec
Switzerland GmbH.

Many of the preceding paragraphs, particularly but not exclusively those
addressing guidance for fiscal 2012 financial results or future performance
contain forward-looking statements within the meaning of Sections 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements can be identified by the words, "believes," "views,"
"expects," "plans," "projects," "hopes," "could," "will," "estimates," and
other similar words. Actual results, events or performance could differ
materially from these forward-looking statements based on a variety of
factors, many of which are beyond Thoratec's control. Therefore, readers are
cautioned not to put undue reliance on these statements. Investors are
cautioned that all such statements involve risks and uncertainties, including
risks related to regulatory approvals, the development of new products,
including development and clinical trial timing, and new markets including
Destination Therapy, the growth of existing markets for our products, customer
and physician acceptance of Thoratec products, changes in the mix of existing
markets for our products and related gross margin for such product sales, the
ability to improve financial performance, the effects of FDA regulatory
requirements, our ability to address issues raised by FDA inspections
adequately and on a timely basis without a resulting recall of products or
interruption of manufacturing or shipment of products, the effects of
healthcare reimbursement and coverage policies, the effects of seasonality on
Thoratec product sales, the effects of competition and the effects of any
merger, acquisition and divestiture related activities. Forward-looking
statements contained in this press release should be considered in light these
factors and those factors discussed from time to time in Thoratec's public
reports filed with the Securities and Exchange Commission, such as those
discussed under the heading, "Risk Factors," in Thoratec's most recent annual
report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form
8-K and other SEC filings. These forward-looking statements speak only as of
the date hereof. Thoratec undertakes no obligation to publicly release the
results of any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date hereof, or to reflect the
occurrence of unanticipated events.

SOURCE Thoratec Corporation

Website: http://www.thoratec.com
Contact: Taylor Harris, Vice President and Chief Financial Officer, Thoratec
Corporation, +1-925-738-0047