SonoSite Projects Record Revenue and Operating Income for 2008
13 January 2009 - 12:30AM
Business Wire
SonoSite, Inc. (NASDAQ:SONO), the world leader and specialist in
hand-carried ultrasound for the point-of-care, today provided
preliminary revenue results for the fourth quarter and year ended
December 31, 2008. The company said that fourth quarter revenue
grew 8% to approximately $70 million compared to the prior year�s
fourth quarter. For the year, worldwide revenue is estimated to
have increased by 19% to approximately $243 million. Changes in
foreign currency rates decreased worldwide revenue by an estimated
4% in the fourth quarter and had a favorable impact of 0.6% on the
year. �The M-Turbo� and S Series� product lines drove a year of
record revenue and operating income in 2008,� said Kevin M.
Goodwin, SonoSite President and CEO. �We gained operating leverage
and expect to achieve an operating margin in 2008 that is toward
the upper end of our guidance of 9-10%, as compared to 2.2% in
2007. We are particularly pleased with this accomplishment in light
of the difficult US economic environment and its impact on hospital
capital spending, which we expect will continue into 2009.
Customers deferred, but did not cancel, approximately 10% of our
forecasted revenue in the fourth quarter.� Mr. Goodwin continued,
�At this juncture in the year, given the US hospital capital
spending environment and an anticipated foreign currency headwind,
we are planning for revenue growth of 5-10% in 2009 at current
exchange rates, with relatively flat revenue growth in the first
three quarters. However, as a result of the company�s forward
planning, by carefully managing costs, yet continuing to invest in
product development, market introductions and channel expansion, we
are targeting to increase operating income by 10-20% in 2009. We
have the financial resources, products, technology and market
leadership to navigate through this environment and position us
well for future, long-term growth.� As previously disclosed, the
company has taken a $3 million charge for expenses related to the
termination of acquisition talks and severance payments which were
included in the company�s 2008 operating margin guidance provided
on October 23, 2008. The fourth quarter of 2008 will also include a
gain of $15.7 million resulting from the repurchase of $80.3
million of senior convertible notes the company issued in July
2007. Mr. Goodwin is presenting today at the J.P. Morgan Annual
Healthcare Conference at 3:00 pm Pacific Time in San Francisco. An
audio replay of Mr. Goodwin�s conference presentation can be
accessed via the Investors Section of SonoSite�s website at
www.sonosite.com and will be available for 30 days. Fourth quarter
2008 financial estimates are preliminary. SonoSite plans to report
2008 financial results on February 12, 2009, after the close of the
financial markets at 1:00 pm Pacific Time. Conference Call
Information SonoSite will hold a conference call on February 12th
at 1:30 pm PT/4:30 pm ET. The call will be broadcast live and can
be accessed via the �Investors� Section of SonoSite�s website at
www.sonosite.com. A replay of the audio webcast will be available
beginning February 12, 2009, at 4:30 pm (PT) until�February 26,
2009, at 10:00 pm (PT) by dialing 719-457-0820 or toll-free
888-203-1112. The confirmation code 7024347 is required to access
the replay. About SonoSite SonoSite, Inc. (www.sonosite.com), is
the innovator and world leader in hand-carried ultrasound.
Headquartered near Seattle, the company is represented by ten
subsidiaries and a global distribution network in over 100
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 over 600 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 customers� ability to finance
the purchase of our systems, including the effect of reduced
spending by hospitals, 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, 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 to market and
sell our products and any changes to such channels, the impact of
patent litigation, our ability to execute our acquisition strategy,
the effect of transactions and activities associated with our
issuance of senior convertible debt in July 2007, including a
repurchase of a portion of the debt, on the market price of our
common stock, and as well as other factors contained in the Item
1A. �Risk Factors� section of our most recent Annual Report on Form
10-K 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.
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