AtriCure (ATRC) Q4 2012 earnings summary

Executive summary

• FY12 revenue rose 9.1% to $70.2M; Q4 growth accelerated to 9.5%, with management citing momentum into 2013.

• Strategic priorities centered on physician training, open-procedure and AtriClip adoption, international expansion, and eventual profitability.

Financial highlights

• Revenue was $70.2M versus $64.4M in FY11; net loss widened to $7.5M from $5.5M.

• Operating loss was $7.2M versus $4.7M; gross profit was $50.0M versus $47.0M.

• SG&A rose 13.0% to $45.1M, including $2.0M higher training costs and $1.6M of executive departure expenses.

• Operating cash use was $1.9M; capital spending was $3.0M, primarily customer loaned generators.

Outlook and guidance

• FY13 growth expected to be led by physician training, competitive-account conversions in open procedures, and international expansion.

• No significant near-term MIS growth expected; clinical, training, and R&D investments target longer-term franchise growth.

• Management expected cash, January 2013 offering proceeds, operating cash flows, and credit availability to cover working capital and capital expenditures for at least 12 months.