Volcano Slips To Loss In Q3; Reaffirms FY Outlook

(RTTNews) - Volcano Corp. (VOLC) Monday reported third-quarter net loss on a GAAP basis of $8.5 million or $0.15 per share,versus net income of $2.0 million or $0.04 per share in the same period a year ago.

The results for the third quarter of 2013 included non-cash restructuring charges for the impairment of intangible assets of $4.6 million, acquisition-related expenses of $1.3 million and net interest expense of $6.4 million.

Excluding acquisition-related items, amortization of intangibles and non-cash interest expense on convertible notes, net of tax, the company reported a non-GAAP loss of $0.08 per share.

On average, 14 analysts polled by Thomson Reuters expected the company to report a loss of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

Volcano reported revenues of $95.8 million, up from $93.7 million a year ago. On a constant currency basis, revenues increased eight percent year-over-year, while sixteen analysts had a consensus revenue estimate of $96.87 million for the quarter.

The company confirmed revenue guidance for 2013 provided on October 28. Based on current foreign currency exchange rates, it expects revenues on a reported basis of $391.0-$395.0 million, with revenues on a constant currency basis in the range of $411.0-$415.0 million. On a reported basis, the company expects a GAAP net loss of $0.56-$0.58 per share and a non-GAAP net loss of $0.25-$0.27 per share. Analysts currently expect the company to earn $0.04 per share for the year, with revenues of $396.26 million.

The company still expects 2014 revenue to increase year-over-year in the range of nine-to-11 percent on a reported basis and eight-to-ten percent on a constant currency basis.