|Thoratec's HeartMate II left ventricular assist device--Courtesy of Thoratec|
California's Thoratec ($THOR) grew revenue in its 2013 third quarter, thanks largely to the company's HeartMate pumps. But the product line's sales climb showed tentative signs of slowing.
Revenue for the quarter hit $126.4 million, 7% above the $117.8 million in revenue booked during the 2012 third quarter, of which the HeartMate left ventricular assist devices (LVADs) produced $112.8 million. During the previous quarter, Thoratec booked $130.5 million in revenue, 10% above the $118.6 million generated during the same period in 2012, and HeartMate pulled in $115.7 million of that.
Thoratec President and CEO Gary Burbach said in a statement that the company produced "strong results" during the quarter, thanks in particular to HeartMate II sales and expansion overseas. He also credited the CentriMag extracorporeal blood pump for driving growth; it generated $10.4 million in revenue, up 39% over Q3 in 2012.
Net income for Q3 reached $18.9 million, down from $24.3 million over the same period a year ago
Thoratec noted that its operating expenses jumped during the quarter, due to its decision to snatch up Terumo's investigational DuraHeart II for up to $56.5 million. The deal called for $13 million up front for the heart pump and up to $43.5 million more over time, assuming the product can meet regulatory approval and device sales milestones. It also represents a big step toward both diversification and next-generation technology. DuraHeart II is designed to use magnetic forces to regulate blood flow and has shown promise in preclinical studies.
At this point, Thoratec is narrowing guidance for fiscal 2013, now predicting a revenue range of $500 million to $505 million, versus the previous range of $490 million to $510 million. It's boosting guidance for net earnings per share to a range of $1.30 to $1.35.
- read the release