Abiomed Announces Q3 FY 2021 Record Revenue of $232 Million, up 5% Year Over Year, With 31% Operating Margin

Rhea-AI Summary

Abiomed, Inc. (NASDAQ: ABMD) reported record revenue of $231.7 million for Q3 fiscal 2021, a 5% year-over-year increase despite COVID-19 challenges. Operating income rose to $71.4 million, up 2%. Impella® product revenue reached $220.8 million, with U.S. sales at $179.6 million, a 1% increase. Notably, international revenues grew significantly, with Japan achieving a 38% rise. Gross margin improved to 82.3%. However, GAAP net income declined to $61.9 million from $69.2 million. The company forecasts Q4 2021 revenue between $225 million and $235 million, reflecting 9-14% growth.

Positive

• Record Q3 fiscal 2021 revenue: $231.7 million, a 5% increase year-over-year.
• Operating income increased by 2% to $71.4 million.
• Impella product revenue totaled $220.8 million, a 4% increase.
• International sales saw significant growth, notably a 38% increase in Japan.

Negative

• GAAP net income fell to $61.9 million from $69.2 million year-over-year.
• U.S. patient usage of the Impella heart pumps decreased by 2% compared to the prior year.

Abiomed, Inc. (NASDAQ: ABMD), a leading provider of breakthrough heart support technologies today reported record revenue in the third quarter fiscal 2021 of $231.7 million, a year over year increase of 5% compared to Q3 fiscal year 2020 despite the negative impact of COVID-19. Operating income was $71.4 million up 2%, compared to $70.3 million in the same period of fiscal 2020.

Recent financial and operating highlights include:

• Worldwide Impella® product revenue for the quarter totaled $220.8 million, an increase of 4% compared to revenue of $212.6 million during Q3 fiscal year 2020.

• U.S. Impella product revenue for the quarter totaled $179.6 million, an increase of 1% compared to revenue of $177.4 million during Q3 fiscal year 2020 with U.S. patient usage of the Impella heart pumps down 2% over prior fiscal year.

• Outside the U.S., Impella product revenue for the quarter totaled $41.2 million, an increase of 17% compared to revenue of $35.2 million during Q3 fiscal year 2020. European Impella product revenue increased 11% compared to the prior fiscal year. Japan Impella product revenue and service increased 38% compared to the prior fiscal year.

• Gross margin for the third quarter fiscal 2021 was 82.3% compared to 82.0% during the same period of fiscal 2020.

• Operating income for the third quarter fiscal 2021 was $71.4 million, or 30.8% operating margin, compared to $70.3 million, or 31.7% operating margin in the same period of fiscal 2020.

• Third quarter fiscal 2021 GAAP net income was $61.9 million, or $1.35 per diluted share, which includes a $6.2 million, or $0.14 per diluted share, gain on our investment in Shockwave and a $1.9 million, or $0.04 per diluted share, of excess tax benefits related to employee share-based compensation awards. This compared to GAAP net income of $69.2 million or $1.51 per diluted share for the prior fiscal year.

• The company generated operating cash flow of $79.1 million in the third quarter. As of December 31, 2020, the company had $787.8 million of cash and marketable securities and no debt.

• On November 5, the company announced that 1,000 patients have been treated with the Impella 5.5 with SmartAssist heart pump in the first year after the U.S. Food and Drug Administration (FDA) granted Impella 5.5 with SmartAssist its highest level of approval for safety and efficacy. The first 1,000 patients were treated primarily for cardiogenic shock from cardiomyopathy, Acute Myocardial Infarction (AMI), and post-cardiotomy, with an average duration of support of 14 days.

• On December 15, the company announced the achievement of two milestones in the development of small bore access for the Impella heart pump. The Impella ECP heart pump has completed the first stage in its FDA early feasibility study (EFS). The FDA also granted 510(k) clearance for the Expandable and Recoilable (XR) Sheath for the Impella 2.5.

• On December 21, the company announced the first two patients in the world have been treated with the Abiomed Breethe OXY-1 System, a compact cardiopulmonary bypass system. The advanced ECMO technology pumps, oxygenates, and removes carbon dioxide from blood for patients whose lungs can no longer provide sufficient end organ oxygenation.

• On January 7, the company announced it has surpassed more than 1,000 patents worldwide, with more than 850 additional patents pending. Abiomed’s robust intellectual property portfolio protects its current and future pump and catheter designs, along with other product components such as motors, cannulas, sensors, software, and access devices. The portfolio also protects manufacturing processes and future artificial intelligence algorithms.

• On January 12, the company presented at the 39th Annual J.P. Morgan Healthcare Conference. A replay of the presentation is available on the investor section of our website.

• On January 27, the company received approval from the FDA to expand the early feasibility study for the Impella ECP based on their review of the results from the first 5 patients.

“Abiomed delivered a record revenue quarter as we continue to remain both focused and committed to our mission of recovering hearts and saving lives despite the challenging COVID environment” said Michael R. Minogue, Abiomed’s Chairman, President and Chief Executive Officer. “We are excited to close Q4 as Abiomed 2.0 and enter Fiscal Year 2022 with our best ever clinical outcomes from existing products, existing indications and existing countries.”

FOURTH QUARTER 2021 REVENUE OUTLOOK

The company anticipates fourth quarter fiscal year 2021 global revenue to be in the range of $225 million to $235 million, representing 9% to 14% growth compared to fourth quarter fiscal year 2020.

EARNINGS CONFERENCE CALL DETAILS

The company will host a conference call to discuss the quarterly results at 8:00 a.m. ET on Thursday, January 28. The conference call will be hosted by Michael R. Minogue, Chairman, President and Chief Executive Officer and Todd A. Trapp, Vice President and Chief Financial Officer. The slides for the Q3 2021 Earnings Call will be available on the investor section of the company’s website.

To listen to the call live, please tune into the webcast via https://edge.media-server.com/mmc/p/or57h3yj or dial (855) 212-2361; the international number is (678) 809-1538. A replay of this conference call will be available beginning at 11:00 a.m. ET January 28, 2021 through 10:00 a.m. ET on February 4, 2021. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 8012819.

ABOUT ABIOMED

Based in Danvers, Massachusetts, USA, Abiomed, Inc. is a leading provider of medical devices that provide circulatory support. Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information, please visit: www.abiomed.com. Abiomed, Impella, Impella 2.5, Impella 5.0, Impella LD, Impella CP, Impella RP, Impella 5.5, Impella Connect, and SmartAssist are registered trademarks of Abiomed, Inc., and are registered in the U.S. and certain foreign countries. Impella ECP, Impella XR Sheath, Impella BTR, CVAD, STEMI DTU, Automated Impella Controller and Abiomed Breethe OXY-1 System are pending trademarks of Abiomed, Inc.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements, including, without limitation, statements regarding development of Abiomed's existing and new products, the company's progress toward commercial growth, and future opportunities and expected regulatory approvals. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements may be accompanied by such words as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “target,” “should,” “likely,” “will” and other words and terms of similar meaning. The company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including, without limitation: the scope, scale and duration of the impact of the COVID-19 pandemic, the company’s dependence on Impella® products for all of its revenues; the company’s ability to successfully compete against its existing or potential competitors; the acceptance of the company’s products by cardiac surgeons and interventional cardiologists; long sales and training cycles associated with expansion into new hospital cardiac centers; reduced market acceptance of the company’s products due to lengthy clinician training process; the company’s ability to effectively manage its growth; the company’s ability to successfully commercialize its products; the company’s ability to obtain regulatory approvals and market and sell its products in certain jurisdictions; enforcement actions and product liability suits relating to off-label uses of the company’s products; unsuccessful clinical trials or procedures relating to products under development; the company’s ability to maintain compliance with regulatory requirements; the failure of third-party payers to provide reimbursement of the company’s products; the company’s ability to increase manufacturing capacity to support continued demand for its products; the company or its vendors’ failure to achieve and maintain high manufacturing standards; the failure of the company’s suppliers to provide the components the company requires; the company’s ability to expand its direct sales activities into international markets; the outcome of ongoing securities class action litigation relating to our public disclosures, the company’s ability to integrate acquired companies into its operations and other risks and challenges detailed in the company's filings with the Securities and Exchange Commission (the “SEC”), including the most recently filed Annual Report on Form 10-K and the filings subsequently filed with or furnished to the SEC. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. Unless otherwise required by law, the company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this release or to reflect the occurrence of unanticipated events.

Abiomed, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)
		December 31, 2020				March 31, 2020
ASSETS
Current assets:
Cash and cash equivalents		$	181,018			$	192,341
Short-term marketable securities			305,434				250,775
Accounts receivable, net			92,990				84,650
Inventories			82,448				90,088
Prepaid expenses and other current assets			31,801				18,009
Total current assets			693,691				635,863
Long-term marketable securities			301,315				207,795
Property and equipment, net			179,364				164,931
Goodwill			79,691				31,969
Other intangibles, net			43,327				14,913
Deferred tax assets			21,233				43,336
Other assets			109,813				117,655
Total assets		$	1,428,434			$	1,216,462
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	23,594			$	32,774
Accrued expenses			71,661				75,107
Deferred revenues			21,291				19,147
Other current liabilities			3,854				4,857
Total current liabilities			120,400				131,885
Contingent consideration			25,316				9,000
Deferred tax liabilities			4,303				806
Other long-term liabilities			16,974				9,305
Total liabilities			166,993				150,996
Commitments and contingencies
Stockholders' equity:
Class B Preferred Stock, $.01 par value			—				—
Authorized - 1,000,000 shares; Issued and outstanding - none
Common stock, $.01 par value			452				451
Authorized - 100,000,000 shares; Issued 47,882,615 shares at December 31, 2020 and 47,542,061 shares at March 31, 2020
Outstanding 45,224,596 shares at December 31, 2020 and 45,008,687 shares at March 31, 2020
Additional paid in capital			781,903				739,133
Retained earnings			771,151				602,482
Treasury stock at cost 2,658,019 shares at December 31, 2020 and 2,533,374 shares at March 31, 2020			(287,896	)			(265,411	)
Accumulated other comprehensive loss			(4,169	)			(11,189	)
Total stockholders' equity			1,261,441				1,065,466
Total liabilities and stockholders' equity		$	1,428,434			$	1,216,462

Abiomed, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
		For the Three Months Ended December 31,								For the Nine Months Ended December 31,
		2020				2019				2020				2019
Revenue		$	231,663			$	221,584			$	606,277			$	634,225
Costs and expenses:
Cost of revenue			41,110				39,996				115,829				111,937
Research and development			33,004				25,655				89,886				73,413
Selling, general and administrative			86,198				85,674				233,809				257,708
			160,312				151,325				439,524				443,058
Income from operations			71,351				70,259				166,753				191,167
Other income:
Investment income, net			1,449				3,086				5,668				9,066
Other income, net			7,935				23,671				42,305				17,279
			9,384				26,757				47,973				26,345
Income before income taxes			80,735				97,016				214,726				217,512
Income tax provision			18,867				27,799				46,057				46,301
Net income (A)		$	61,868			$	69,217			$	168,669			$	171,211
Basic net income per share		$	1.37			$	1.53			$	3.74			$	3.79
Basic weighted average shares outstanding			45,201				45,140				45,105				45,225
Diluted net income per share (B)		$	1.35			$	1.51			$	3.69			$	3.73
Diluted weighted average shares outstanding			45,706				45,695				45,653				45,935
(A) Net income includes the following items:
Excess tax benefits on stock-based compensation awards		$	(1,909	)		$	(485	)		$	(10,363	)		$	(13,775	)
Gain on investment in Shockwave Medical			(6,237	)			(17,775	)			(32,338	)			(13,272	)
		$	(8,146	)		$	(18,260	)		$	(42,701	)		$	(27,047	)
(B) Diluted net income per share includes the following items:
Excess tax benefits on stock-based compensation awards		$	(0.04	)		$	(0.01	)		$	(0.23	)		$	(0.30	)
Gain on investment in Shockwave Medical			(0.14	)			(0.39	)			(0.71	)			(0.29	)
		$	(0.18	)		$	(0.40	)		$	(0.94	)		$	(0.59	)

 

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FAQ

What were Abiomed's Q3 fiscal 2021 revenues for ABMD?

Abiomed reported record revenues of $231.7 million for Q3 fiscal 2021.

How did the Impella product sales perform in Q3 fiscal 2021?

Impella product revenue totaled $220.8 million in Q3 fiscal 2021, marking a 4% increase year-over-year.

What is the forecast for Abiomed's Q4 revenue?

Abiomed anticipates Q4 2021 revenue between $225 million and $235 million, representing a 9% to 14% growth compared to the previous year.

What was Abiomed's GAAP net income in Q3 fiscal 2021?

The GAAP net income for Q3 fiscal 2021 was $61.9 million, down from $69.2 million in the same quarter last year.

How did Abiomed's gross margin change in Q3 fiscal 2021?

The gross margin for Q3 fiscal 2021 was 82.3%, slightly up from 82.0% in the previous fiscal year.