AtriCure (ATRC) Q4 2009 earnings summary

Executive summary

• FY09 revenue was $54.5M; positive operating cash flow of $0.4M and product launches advanced priorities despite challenging markets.

• Strategic focus: improve profitability, advance FDA trials, and develop products for near-term growth and long-term expansion.

Financial highlights

• Revenue declined 1.3% YoY to $54.5M; domestic sales fell 6.0%, while international sales rose 24.9% reported.

• Gross profit was $41.8M and gross margin 76.6%, up from 76.1% in 2008.

• Operating loss widened to $15.5M from $11.0M; net loss was $16.5M versus $10.2M, and diluted EPS was -$1.13 versus -$0.72.

• Operating expenses included a $6.8M goodwill impairment and a $4.0M DOJ settlement reserve; SG&A fell $7.3M, partly offset by higher R&D.

Outlook and guidance

• 2010 priorities included a planned U.S. AtriClip launch in H2, next-generation products, international expansion, targeted U.S. sales-force growth, and cryo market-share gains.

• Expected milestones included ABLATE PMA filing in H1 2010, DEEP AF trial initiation, and continued development of hybrid ablation adoption.

• Cash, equivalents, short-term investments, expected operating cash flows, and credit access were expected to cover working capital and capital needs for at least 12 months.