Thoratec's hemostasis division hurts its Q2 bottom line
Thoratec, a provider of mechanical circulatory support therapies for failing hearts, said that revenues for the 2009 second quarter that ended July 4, were $92.1 million, versus revenues of $82.6 million in the second quarter of 2008, representing a 20 percent growth in cardiovascular division revenues and an 11 percent increase in overall revenues. Yet, declining sales for its hemostasis management division adversely affected its net income.
Revenues at its International Technidyne Corporation (ITC), an Edison, N.J.-based developer of hemostasis management systems and point-of-care testing, were $22.8 million versus $25.1 million for the second quarter a year ago. Thoratec said revenues at ITC reflect the impact of the "current economic environment on hospital and physician capital equipment purchasing activity and competitive pressure."
The Pleasanton, Calif.-based company booked a net income in the second quarter of 2009 of $1.8 million, compared with a net income of $7.6 million in the same period a year ago.
The company also reported a breakdown of year-to-date revenues by product line for both of its divisions. Its cardiovascular division revenues in the first six months of 2009 were $133.9 million versus $97.7 million a year ago. HeartMate II and HeartMate XVE product sales were $108.9 million, an increase of 58 percent year-over-year. Percutaneous ventricular assist device (PVAD) and implantable VAD product sales were $17.9 million, a decrease of 19 percent over the prior year. CentriMag sales were $5.7 million, an increase of five percent year-over-year, and graft sales were $1.4 million, consistent with the prior year. Revenues from pump sales were $104.2 million versus $74.7 million a year ago, while revenues from equipment and accessories were $28.3 million versus $21.7 million a year ago
"Even with the difficult comparable created by the commercial launch of the HeartMate II VAD system for bridge-to-transplantation (BTT) in the second quarter of last year, our cardiovascular division continued to achieve strong revenue growth of 20 percent. We saw continued adoption of the HeartMate II in both North America and Europe for BTT and solid enrollment in our U.S. trial for Destination Therapy," said Gary F. Burbach, Thoratec's president and CEO. "Growth was offset by a 9 percent decline in revenues from our ITC division year-over-year due to a difficult capital equipment environment and competitive pressures."
Revenues at its International Technidyne Corporation (ITC), an Edison, N.J.-based developer of hemostasis management systems and point-of-care testing, were $22.8 million versus $25.1 million for the second quarter a year ago. Thoratec said revenues at ITC reflect the impact of the "current economic environment on hospital and physician capital equipment purchasing activity and competitive pressure."
The Pleasanton, Calif.-based company booked a net income in the second quarter of 2009 of $1.8 million, compared with a net income of $7.6 million in the same period a year ago.
The company also reported a breakdown of year-to-date revenues by product line for both of its divisions. Its cardiovascular division revenues in the first six months of 2009 were $133.9 million versus $97.7 million a year ago. HeartMate II and HeartMate XVE product sales were $108.9 million, an increase of 58 percent year-over-year. Percutaneous ventricular assist device (PVAD) and implantable VAD product sales were $17.9 million, a decrease of 19 percent over the prior year. CentriMag sales were $5.7 million, an increase of five percent year-over-year, and graft sales were $1.4 million, consistent with the prior year. Revenues from pump sales were $104.2 million versus $74.7 million a year ago, while revenues from equipment and accessories were $28.3 million versus $21.7 million a year ago
"Even with the difficult comparable created by the commercial launch of the HeartMate II VAD system for bridge-to-transplantation (BTT) in the second quarter of last year, our cardiovascular division continued to achieve strong revenue growth of 20 percent. We saw continued adoption of the HeartMate II in both North America and Europe for BTT and solid enrollment in our U.S. trial for Destination Therapy," said Gary F. Burbach, Thoratec's president and CEO. "Growth was offset by a 9 percent decline in revenues from our ITC division year-over-year due to a difficult capital equipment environment and competitive pressures."