SonoSite Provides Preliminary Third Quarter Results and Updates 2006 Outlook
17 October 2006 - 6:10AM
Business Wire
SonoSite, Inc. (Nasdaq:SONO) today provided preliminary third
quarter results and an updated 2006 outlook. The company said that
worldwide revenue in the third quarter of 2006 increased by
approximately 16% over the third quarter of 2005 to $40 million and
that it expects to report earnings on a GAAP basis of $0.01 to
$0.02 per diluted share. The company also said it generated
positive cash flow in the quarter and that cash, cash equivalents
and investments increased $1.7 million in the quarter to a balance
of $86.0 million. �We completed the third quarter with strong
market fundamentals as well as strong performances from a number of
our key sales territories and countries around the world,� said
Kevin M. Goodwin, SonoSite President and CEO. �However, the breadth
of our performance was not what we expected. In the U.S., revenue
was lower than expected due to the ongoing sales force transition,
specifically the integration of 18 new sales reps to address the
physician office market and the redeployment of our core sales team
into the hospital market. In the short-term this transition is
taking longer than expected but in the long-term it will allow us
to more effectively address these large potential markets with
additional sales capacity. Our international business continued its
improvement initiatives and delivered its best growth in five
quarters. Internationally, we are putting in place the key
ingredients for long-term growth though we have more work to do to
achieve our objectives,� added Mr. Goodwin. �In light of this
transition this year, we are revising full year 2006 revenue
guidance to approximately 15% growth over 2005 as our business
units work through these transitory issues. We expect to show good
year-over-year growth in profitability with GAAP pre-tax income in
a range of $8 - $9 million which includes equity-based compensation
expense of approximately $8.3 million. Excluding the equity-based
compensation, pre-tax income is expected to double over the prior
year. We intend to continue to expand our sales capacity both in
the U.S. and international markets during 2007 and continue to
increase our research and development investment aimed at
delivering several new products over the next 24 months,� Mr.
Goodwin said. �The opportunities in point-of-care markets offer
substantial growth potential and win-win-win opportunities for
patients, providers, and physicians both in the hospital and
private office sectors. Interest in SonoSite�s hand-carried
technology continues to be stronger than ever, yet we clearly have
been impacted by transition dynamics this year. While we have more
work to do, we believe that with time, we will be able to more
fully capitalize on these opportunities,� concluded Mr. Goodwin.
Third quarter 2006 financial estimates are preliminary and the
company plans to report complete third quarter results on October
30, 2006 after the close of the financial markets at 1:00 p.m.
Pacific Time. Management will host a conference call on October 30,
2006 beginning at 1:30 p.m. Pacific Time that will be webcast on
the company�s website at www.sonosite.com. A replay of the audio
webcast will be available beginning October 30, 2006 at 4:30 p.m.
PT until November 13, 2006, 12:00 midnight PT by dialing (719)
457-0820 or toll-free (888) 203-1112. The confirmation code 2669427
is required to access the replay. The call will be also archived on
SonoSite�s website. About SonoSite SonoSite, Inc.
(www.sonosite.com) is the innovator and world leader in
hand-carried ultrasound, with an installed base of more than 25,000
systems. The company, headquartered near Seattle, Washington is
represented by eight subsidiaries and a global distribution network
in over 75 countries. SonoSite�s small, lightweight systems are
expanding the use of ultrasound across the clinical spectrum by
cost-effectively bringing high performance ultrasound to the point
of patient care. The company employs 500 people worldwide.
Forward-looking Information and the Private Litigation Reform Act
of 1995 Certain statements in this press release relating to the
market acceptance of our products, possible future sales relating
to expected orders, and our future financial position and operating
results are �forward-looking statements� for the purposes of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on the
opinions and estimates of our management at the time the statements
are made and are subject to risks and uncertainties that could
cause actual results to differ materially from those expected or
implied by the forward-looking statements. These statements are not
guaranties of future performance and are subject to known and
unknown risks and uncertainties and are based on potentially
inaccurate assumptions. Factors that could affect the rate and
extent of market acceptance of our products, the receipt of
expected orders, and our financial performance include our ability
to successfully manufacture, market and sell our ultrasound
systems, our ability to accurately forecast customer demand for our
products, our ability to manufacture and ship our systems in a
timely manner to meet customer demand, variability in quarterly
results caused by the timing of large project orders from
governmental or international entities and the seasonality of
hospital purchasing patterns, timely receipts of regulatory
approvals to market and sell our products, the outcome of the
federal appeal of a patent ruling in our favor in a patent
infringement case and expenses associated with such appeal,
regulatory and reimbursement changes in various national health
care markets, constraints in government and public health spending,
the ability of our distribution partners and other sales channels
such as the physician office sales force to market and sell our
products, as well as other factors described under the heading,
�Important Factors that May Affect Our Business, Our Results of
Operations and Our Stock Price,� included in our latest periodic
report filed with the Securities and Exchange Commission. We
caution readers not to place undue reliance upon these
forward-looking statements that speak only as to the date of this
release. We undertake no obligation to publicly revise any
forward-looking statements to reflect new information, events or
circumstances after the date of this release or to reflect the
occurrence of unanticipated events. SonoSite, Inc. (Nasdaq:SONO)
today provided preliminary third quarter results and an updated
2006 outlook. The company said that worldwide revenue in the third
quarter of 2006 increased by approximately 16% over the third
quarter of 2005 to $40 million and that it expects to report
earnings on a GAAP basis of $0.01 to $0.02 per diluted share. The
company also said it generated positive cash flow in the quarter
and that cash, cash equivalents and investments increased $1.7
million in the quarter to a balance of $86.0 million. "We completed
the third quarter with strong market fundamentals as well as strong
performances from a number of our key sales territories and
countries around the world," said Kevin M. Goodwin, SonoSite
President and CEO. "However, the breadth of our performance was not
what we expected. In the U.S., revenue was lower than expected due
to the ongoing sales force transition, specifically the integration
of 18 new sales reps to address the physician office market and the
redeployment of our core sales team into the hospital market. In
the short-term this transition is taking longer than expected but
in the long-term it will allow us to more effectively address these
large potential markets with additional sales capacity. Our
international business continued its improvement initiatives and
delivered its best growth in five quarters. Internationally, we are
putting in place the key ingredients for long-term growth though we
have more work to do to achieve our objectives," added Mr. Goodwin.
"In light of this transition this year, we are revising full year
2006 revenue guidance to approximately 15% growth over 2005 as our
business units work through these transitory issues. We expect to
show good year-over-year growth in profitability with GAAP pre-tax
income in a range of $8 - $9 million which includes equity-based
compensation expense of approximately $8.3 million. Excluding the
equity-based compensation, pre-tax income is expected to double
over the prior year. We intend to continue to expand our sales
capacity both in the U.S. and international markets during 2007 and
continue to increase our research and development investment aimed
at delivering several new products over the next 24 months," Mr.
Goodwin said. "The opportunities in point-of-care markets offer
substantial growth potential and win-win-win opportunities for
patients, providers, and physicians both in the hospital and
private office sectors. Interest in SonoSite's hand-carried
technology continues to be stronger than ever, yet we clearly have
been impacted by transition dynamics this year. While we have more
work to do, we believe that with time, we will be able to more
fully capitalize on these opportunities," concluded Mr. Goodwin.
Third quarter 2006 financial estimates are preliminary and the
company plans to report complete third quarter results on October
30, 2006 after the close of the financial markets at 1:00 p.m.
Pacific Time. Management will host a conference call on October 30,
2006 beginning at 1:30 p.m. Pacific Time that will be webcast on
the company's website at www.sonosite.com. A replay of the audio
webcast will be available beginning October 30, 2006 at 4:30 p.m.
PT until November 13, 2006, 12:00 midnight PT by dialing (719)
457-0820 or toll-free (888) 203-1112. The confirmation code 2669427
is required to access the replay. The call will be also archived on
SonoSite's website. About SonoSite SonoSite, Inc.
(www.sonosite.com) is the innovator and world leader in
hand-carried ultrasound, with an installed base of more than 25,000
systems. The company, headquartered near Seattle, Washington is
represented by eight subsidiaries and a global distribution network
in over 75 countries. SonoSite's small, lightweight systems are
expanding the use of ultrasound across the clinical spectrum by
cost-effectively bringing high performance ultrasound to the point
of patient care. The company employs 500 people worldwide.
Forward-looking Information and the Private Litigation Reform Act
of 1995 Certain statements in this press release relating to the
market acceptance of our products, possible future sales relating
to expected orders, and our future financial position and operating
results are "forward-looking statements" for the purposes of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on the
opinions and estimates of our management at the time the statements
are made and are subject to risks and uncertainties that could
cause actual results to differ materially from those expected or
implied by the forward-looking statements. These statements are not
guaranties of future performance and are subject to known and
unknown risks and uncertainties and are based on potentially
inaccurate assumptions. Factors that could affect the rate and
extent of market acceptance of our products, the receipt of
expected orders, and our financial performance include our ability
to successfully manufacture, market and sell our ultrasound
systems, our ability to accurately forecast customer demand for our
products, our ability to manufacture and ship our systems in a
timely manner to meet customer demand, variability in quarterly
results caused by the timing of large project orders from
governmental or international entities and the seasonality of
hospital purchasing patterns, timely receipts of regulatory
approvals to market and sell our products, the outcome of the
federal appeal of a patent ruling in our favor in a patent
infringement case and expenses associated with such appeal,
regulatory and reimbursement changes in various national health
care markets, constraints in government and public health spending,
the ability of our distribution partners and other sales channels
such as the physician office sales force to market and sell our
products, as well as other factors described under the heading,
"Important Factors that May Affect Our Business, Our Results of
Operations and Our Stock Price," included in our latest periodic
report filed with the Securities and Exchange Commission. We
caution readers not to place undue reliance upon these
forward-looking statements that speak only as to the date of this
release. We undertake no obligation to publicly revise any
forward-looking statements to reflect new information, events or
circumstances after the date of this release or to reflect the
occurrence of unanticipated events.
Sonos (NASDAQ:SONO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sonos (NASDAQ:SONO)
Historical Stock Chart
From Jul 2023 to Jul 2024