MINNEAPOLIS, Oct. 24, 2016 (GLOBE NEWSWIRE) -- Vascular Solutions, Inc. (Nasdaq:VASC) today reported financial results for the third quarter ended September 30, 2016.
Worldwide revenue increased 13% from the third quarter of 2015 to $41.8 million, near the top of the company’s revenue guidance of $41.0 million to $42.0 million. U.S. revenue increased 15% to $33.7 million, while international revenue increased 4% to $8.1 million. Excluding for comparison purposes the launch inventory sales of the GuideLiner® catheter into Japan in the year-ago third quarter, international revenue increased 19% and worldwide revenue increased 16% in the third quarter of 2016.
Gross margin was 64.4%, compared to 67.2% in the year-ago quarter. The decrease in gross margin was primarily due to product mix, reflecting a substantial increase in the sale of reprocessed vein catheters in the third quarter of 2016 which lowered overall gross margin by 100 basis points. In addition, expenses associated with the previously-announced voluntary recall of the Twin-Pass® catheter resulted in a reduction of 25 basis points in the third quarter gross margin. No additional expenses are expected to be incurred in connection with the Twin-Pass catheter recall, and shipments of the Twin-Pass resumed on October 15th. For the fourth quarter, the company expects gross margin to be between 65.0% and 66.0%.
Operating earnings were $7.2 million in the third quarter, representing an operating margin of 17%. Operating earnings in the year-ago third quarter were $4.4 million, which represented an operating margin of 12%. During the third quarter of 2015, the company incurred $2.8 million of legal expenses in connection with the Short Kit litigation. As a result of the jury’s full and final acquittal on all charges at the conclusion of the February 2016 trial, no Short Kit legal expenses were incurred in the third quarter of 2016, and no further legal expenses are expected to be incurred in connection with this matter.
GAAP earnings per diluted share (EPS) during the third quarter was $0.31 compared to GAAP EPS in the year-earlier third quarter of $0.16.
“We are pleased to report another very strong quarter of growth and to set our guidance for sustained double-digit growth throughout 2017,” said Howard Root, CEO of Vascular Solutions. “Our core strategy of launching multiple clinical specialty products continues to produce excellent financial results. This year will mark Vascular Solutions’ 13th consecutive year of double-digit growth in product sales, and we expect 2017 will be our 14th year. As we look at our longer-term prospects, we are excited about the ongoing progress of our approximately 40 projects in various stages of development within our internal R&D pipeline, as well as our top-priority long-term development program for RePlas™ freeze-dried plasma in collaboration with the U.S. Army. Beyond these internal efforts, our strong balance sheet positions us well to benefit from future distribution agreements and tuck-in acquisitions that fit our customer call-points.”
Last updated on: 26/10/2016
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