Summary
Edwards Lifesciences Corporation (EW) reported solid financial performance for the quarter and six months ended June 30, 2009. The company demonstrated revenue growth driven by its Heart Valve Therapy segment, particularly with the success of its transcatheter heart valve technologies. Gross profit margins improved significantly due to a more favorable product mix and the impact of expiring hedging contracts. While operating expenses saw an increase, largely due to strategic investments in R&D for key growth areas like transcatheter valve technologies, the company maintained its focus on core competencies. The company also provided an update on its ongoing legal proceedings, noting favorable rulings in some patent infringement cases, and confirmed its commitment to product development and market expansion.
Financial Highlights
27 data points| Revenue | $335.50M |
| Cost of Revenue | $101.90M |
| Gross Profit | $233.60M |
| R&D Expenses | $42.60M |
| SG&A Expenses | $128.50M |
| Net Income | $47.50M |
| EPS (Basic) | $0.07 |
| EPS (Diluted) | $0.07 |
| Shares Outstanding (Basic) | 674.40M |
| Shares Outstanding (Diluted) | 702.00M |
Key Highlights
- 1Net sales increased by 2.4% to $335.5 million for the quarter and 3.9% to $649.0 million for the six months, primarily driven by the Heart Valve Therapy segment.
- 2Gross profit margin improved to 69.6% for the quarter and 69.4% for the six months, up from 65.5% and 65.4% respectively in the prior year periods.
- 3Heart Valve Therapy segment sales grew by 12.0% and 14.0% for the quarter and six months, respectively, fueled by transcatheter heart valve technologies and pericardial tissue valves.
- 4Research and Development expenses increased by 20.3% for the quarter and 20.8% for the six months, reflecting investments in key growth areas such as transcatheter aortic and mitral valve programs.
- 5The company reported a gain of $1.5 million related to a pending sale of its hemofiltration product line, expected to close in Q3 2009.
- 6Diluted earnings per share were $0.81 for the quarter and $1.85 for the six months, an increase from $0.67 and $0.98 in the prior year periods.
- 7The company continues to navigate legal proceedings, with favorable rulings received in some patent infringement cases related to its heart valve technologies.