Summary
Edwards Lifesciences Corporation reported strong first-quarter 2011 results, with net sales increasing by 18.8% year-over-year to $404.5 million. This growth was primarily driven by the Heart Valve Therapy segment, which saw a significant boost from transcatheter heart valves and surgical tissue valves, and the Critical Care segment. The company also completed the acquisition of Embrella Cardiovascular, Inc. for $42.6 million, strengthening its position in cerebral embolic protection devices. Profitability also improved, with net income rising to $63.9 million, or $0.53 per diluted share, compared to $47.7 million, or $0.40 per diluted share, in the prior year's first quarter. The company demonstrated effective expense management, with SG&A as a percentage of net sales decreasing. Investments in research and development, particularly for the transcatheter heart valve program, were increased to support future growth. The company's balance sheet remains solid, with robust operating cash flows and a significant cash position.
Financial Highlights
45 data points| Revenue | $404.50M |
| Cost of Revenue | $116.80M |
| Gross Profit | $287.70M |
| R&D Expenses | $59.00M |
| SG&A Expenses | $150.30M |
| Net Income | $63.90M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 689.40M |
| Shares Outstanding (Diluted) | 723.00M |
Key Highlights
- 1Net sales increased 18.8% to $404.5 million, driven by strong performance in Heart Valve Therapy and Critical Care segments.
- 2Heart Valve Therapy sales grew 24.5% to $244.9 million, with notable contributions from transcatheter and surgical tissue valves.
- 3Critical Care sales rose 14.8% to $120.6 million, boosted by pressure monitoring and the FloTrac system.
- 4Acquisition of Embrella Cardiovascular, Inc. for $42.6 million to enhance cerebral embolic protection device offerings.
- 5Net income increased to $63.9 million ($0.53/share) from $47.7 million ($0.40/share) in the prior year's quarter.
- 6Gross profit margin improved slightly to 71.1% from 71.0%, reflecting a more favorable international product mix.
- 7Research and Development expenses increased by $13.8 million to $59.0 million, reflecting increased investment in the transcatheter heart valve program.