MASON, Ohio--(BUSINESS WIRE)--Aug 1, 2018--AtriCure, Inc. ( Nasdaq: ATRC ), a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management, today announced second quarter 2018 financial results.
“Our second quarter results reflect strong revenue growth, solid operational performance and continued execution on our strategic priorities,” said Mike Carrel, President and Chief Executive Officer of AtriCure. “We are pleased to be reporting positive adjusted EBITDA for the second quarter as well as raising our revenue expectations for the year.”
Second Quarter 2018 Financial Results
Revenue for the second quarter of 2018 was $51.8 million, an increase of $6.6 million or 14.5% (13.5% on a constant currency basis), compared to second quarter 2017 revenue. U.S. revenue increased 14.9% to $40.8 million, driven by increased sales of ablation-related open-heart products and appendage management products. International revenue was $11.0 million, an increase of $1.3 million or 13.1% (8.3% on a constant currency basis), compared to second quarter 2017 revenue, driven primarily by increased sales in Asia and certain European markets.
Gross profit for the second quarter of 2018 was $38.1 million compared to $32.6 million for the second quarter of 2017. Gross margin for the second quarter of 2018 increased to 73.5% compared to 72.0% in the second quarter of 2017, driven primarily by product mix.
Operating expenses for the second quarter of 2018 decreased 4.6%, or $1.8 million, compared to the second quarter of 2017. The decrease in operating expenses was primarily due to a contingent consideration adjustment of $5.9 million recorded in the second quarter of 2018.
Income from operations for the second quarter of 2018 was $1.0 million, compared to a loss of $6.4 million for the second quarter of 2017. Net loss per share was $0.01 for the second quarter of 2018 compared to $0.21 for the second quarter of 2017. The adjusted loss per share for the second quarter of 2018, which excludes the contingent consideration adjustment, was $0.19.
Adjusted EBITDA, a non-GAAP measure, was positive $0.8 million for the second quarter of 2018 and a loss of $0.4 million for the second quarter of 2017 (see reconciliation of GAAP results to non-GAAP results in the table accompanying this release).
2018 Financial Guidance
Management is raising its 2018 revenue guidance. Revenue for 2018 is projected to be approximately $193 million to $197 million. Management continues to expect positive full-year adjusted EBITDA, a non-GAAP measure, with legal fees continuing to be a watch item.
AtriCure will host a conference call at 4:30 p.m. Eastern Time on Wednesday, August 1, 2018 to discuss its second quarter 2018 financial results. The call may be accessed through an operator by calling (844) 884-9951 for domestic callers and (661) 378-9661 for international callers using conference ID number 1519128. A live audio webcast of the presentation may be accessed by visiting the Investors page of AtriCure’s corporate website at ir.atricure.com. A replay of the presentation will be available for 90 days following the presentation.
AtriCure, Inc. provides innovative technologies for the treatment of Afib and related conditions. Afib affects more than 33 million people worldwide. Electrophysiologists and cardiothoracic surgeons around the globe use AtriCure technologies for the treatment of Afib and reduction of Afib related complications. AtriCure’s Isolator® Synergy™ Ablation System is the first and only medical device to receive FDA approval for the treatment of persistent Afib. AtriCure’s AtriClip Left Atrial Appendage Exclusion System products are the most widely sold LAA management devices worldwide, with more than 150,000 implanted to date. For more information, visit AtriCure.com or follow us on Twitter @ AtriCure.
This press release contains “forward-looking statements”– that is, statements related to future events that by their nature address matters that are uncertain. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit http://www.atricure.com/fls as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors. We do not undertake to update our forward-looking statements. This document also includes forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
Use of Non-GAAP Financial Measures
To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure uses certain non-GAAP financial measures in this release as supplemental financial metrics.
Revenue reported on a constant currency basis is a non-GAAP measure and is calculated by applying previous period foreign currency exchange rates to each of the comparable periods. Management analyzes revenue on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on revenue, the Company believes that evaluating growth in revenue on a constant currency basis provides an additional and meaningful assessment of revenue to both management and the company’s investors.
Adjusted EBITDA provides an indication of performance excluding certain items. Management believes that in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. The excluded items vary in frequency and/or impact on our continuing operations and management believes that the excluded items are typically not reflective of our ongoing core business operations. Further, management uses adjusted EBITDA for its strategic planning. A reconciliation of adjusted EBITDA reported in this release to the most comparable GAAP measure for the respective periods can be found in a table later in this release.
Adjusted loss per share is a non-GAAP measure which calculates the net loss per share before non-cash adjustments to expenses related to the adjustment in value of the contingent consideration liability. Management believes this metric provides a better measure of comparability of results between periods, as such adjustments are not frequent in nature or similar in value, and can be significant.
The non-GAAP financial measures used by AtriCure may not be the same or calculated the same as those used by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for AtriCure’s financial results prepared and reported in accordance with GAAP.
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