AtriCure (ATRC) Q4 2013 earnings summary

Executive summary

• 2013 revenue reached $81.889 million, up 16.6% YoY; fourth-quarter sales rose 19%, supporting momentum into 2014.

• Priorities included expanding physician education and clinical evidence, advancing product innovation, and integrating Estech to broaden minimally invasive surgery offerings.

• The Synergy System remained the only FDA-approved surgical device for treating persistent and long-standing persistent Afib in specified concomitant open-heart procedures.

Financial highlights

• Revenue was $81.889 million versus $70.247 million in 2012; reported growth was 16.6% and constant-currency growth was 16.1%.

• Gross profit was $59.563 million, up from $50.014 million; operating loss was $10.891 million versus $7.198 million.

• Net loss widened to $11.462 million from $7.534 million; basic and diluted loss per share was $0.56 versus $0.47.

• Net cash used in operating activities was $5.222 million; year-end cash and cash equivalents were $14.892 million, with investments of $19.233 million.

• Q4 revenue was $21.884 million versus $18.364 million in Q4 2012; Q4 net loss was $4.980 million versus $2.020 million.

Outlook and guidance

• Momentum was expected to continue into 2014, with growth initiatives centered on training, clinical trials, innovation, FDA indications, and the expanded MIS platform.

• Transaction, transition, and severance costs related to Estech were expected to total approximately $3.5 million in 2014.

• Cash, investments, expected operating cash flows, and available revolving credit were expected to cover working capital and capital needs for at least 12 months.