HeartWare International, Inc.
) posted a narrower loss of $15.3 million or 92 cents per share
for the fourth quarter of 2013 compared with $21.1 million or
$1.46 per share for the same quarter of 2012. However, the loss
was broader than the Zacks Consensus Estimate of 80 cents. Due to
the narrower loss, shares of the company rose 0.5% after the
market closed on Feb 28.
For full year 2013, HeartWare's loss was also narrower at $52.0
million or $3.24 per share compared with $86.6 million or $6.07
per share in 2012.
Revenue for the fourth quarter surged 62% to $53.1 million. For
full year 2013, revenues were $207.9 million, up sharply by 87%
from 2012. The revenue growth can be attributable to commercial
development of the company's HeartWare System.
In 2013, the company has initiated enrollment for its
supplemental cohort study for destination therapy in the U.S.,
received approval to commence enrollment in its trial in Japan,
and obtained conditional approval for its U.S. thoracotomy trial
from the FDA. Currently, HeartWare is waiting for the initiation
of first-in-human testing of its next generation MVAD pump and
In the reported quarter, HeartWare sold 524 HeartWare Systems,
reflecting a 52% rise from 345 units in the fourth quarter of
2012. Revenues from the U.S. spiked 94% to $25.9 million, while
revenues from international markets, where 282 units were sold,
grew 41% to $27.1 million in the quarter.
Gross profit in the quarter more than doubled to $33.8 million
from $16.1 million in the fourth quarter of 2012. Gross margin
rose significantly by 1440 basis points to 63.6% from 49.2% in
Research and development expense in the quarter rose 36.5% to
$30.3 million due to clinical trials and research and development
related to advancing HeartWare's existing products and pipeline
Selling, general and administrative expenses escalated 72.9% to
$23.0 million in the quarter driven by increased sales and
marketing activities, particularly in the U.S., and an overall
rise in corporate infrastructure to support the company's
HeartWare ended the year with cash and cash equivalents of $162.9
million, up 89.6% from $85.9 million at the end of 2012. Current
liabilities increased 56.2% to $53.2 million as of Dec 31, 2013
from $34.0 million as of Dec 31, 2012.
Although HeartWare has not provided any earnings and revenues
guidance, it believes the acquisition of CircuLite - developer of
the SYNERGY Circulatory Support System - in Dec 2013, will help
the company expand its core business into the partial-support
market segment, through the treatment of less risky heart failure
Miami Lakes, FL-based HeartWare International is a medical device
company that develops small implantable pumps for the treatment
of chronic and end-stage heart failure. Its principle product is
HeartWare Ventricular Assist System. Currently, the stock retains
a Zacks Rank #3 (Hold).
Some better-ranked stocks in the medical instruments industry
Natus Medical Inc.
Syneron Medical Ltd.
). All of them carry a Zacks Rank #1 (Strong Buy).
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HEARTWARE INTL (HTWR): Free Stock Analysis
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