NATICK, Mass., April 19 -- Boston Scientific
Corporation (NYSE: BSX) today announced financial results for its first
quarter ended March 31, 2005.
Highlights:
- Net sales of $1.6 billion, an increase of 49 percent
- Worldwide coronary
stent sales of $721 million, an increase of 154 percent
- Net income,
excluding net special charges, of $431 million, an increase of 122
percent
- Earnings per share, excluding net special charges, of $0.51
per share,
an increase of 122 percent
Net sales for the first quarter were $1.615 billion as compared to
$1.082 billion for the first quarter of 2004, an increase of
49 percent. Excluding
the favorable impact of $26 million of foreign currency fluctuations,
net sales increased 47 percent. Worldwide coronary stent sales for
the first
quarter were $721 million as compared to $284 million for the first quarter
of 2004, an increase of 154 percent. Worldwide sales of our TAXUS(R)
paclitaxel-
eluting coronary stent systems during the quarter were $686 million,
an increase of 219 percent. U.S. sales of our TAXUS(R) Express2(TM)
paclitaxel-
eluting coronary stent system during the quarter were $494 million.
Net income for the quarter, excluding net special charges, increased
122 percent to $431 million, or $0.51 per share, as compared
to $194 million, or
$0.23 per share, in the first quarter of 2004. Reported net income for
the quarter, including net special charges of $73 million, was $358
million,
or $0.42 per share. The net special charges for the quarter consisted
of
purchased in-process research and development costs related to the acquisition
of Advanced Stent Technologies.
" This was another record quarter, thanks in large part to the ongoing
success of the TAXUS Express2 paclitaxel-eluting coronary stent system," said
Jim Tobin, President and Chief Executive Officer of Boston Scientific. "In
the coming quarters, we expect our recent dramatic growth to return to
more moderate levels, following a full year of TAXUS system sales in
the U.S. I
want to congratulate our entire team for achieving global leadership
in the drug-eluting stent market. Maintaining this leadership will continue
to be
our number one priority."
Boston Scientific officials will be discussing these and other issues
with analysts on a conference call at 11:00 a.m. (ET) Tuesday, April
19. The
Company will webcast the call to all interested parties through its website:
http://www.bostonscientific.com. Please see the website for details
on how to access the webcast. The webcast will be available for one
year
on the
Boston Scientific website.
Boston Scientific is a worldwide developer, manufacturer and marketer
of medical devices whose products are used in a broad range of interventional
medical specialties. For more information, please visit:
http://www.bostonscientific.com.
The Company discloses non-GAAP or pro forma measures that exclude certain
charges. Non-GAAP measures may exclude such items as charges related
to purchased in-process research and development and certain litigation.
Management uses these measures to establish operational goals, and believes
that non-GAAP measures may assist investors in analyzing the underlying
trends in the Company's business over time. Investors should consider
these non-GAAP
measures in addition to, not as a substitute for, or as superior to,
financial
reporting measures prepared in accordance with GAAP.
This press release contains forward-looking statements. The Company
wishes to caution the reader of this press release that actual results
may differ from those discussed in the forward-looking statements and
may be
adversely affected by, among other things, risks associated with new
product development and introduction, clinical trials, regulatory approvals,
competitive offerings, intellectual property, litigation, the Company's
overall business strategy, and other factors described in the Company's
filings with the Securities and Exchange Commission.
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Three Months
Ended
March 31, 2005 March 31,
2004
Reported Adjust- Adjusted Reported
ments
(in millions, except per share data)
Net sales $1,615 $1,615 $1,082
Cost of products sold 344 344 292
Gross profit 1,271 1,271 790
Selling, general and administrative
expenses 431 431 348
Research and development expenses 159 159 134
Royalty expense 64 64 22
Amortization expense 31 31 22
Purchased research and development 73 $(73)
758 (73) 685 526
Operating income 513 73 586 264
Other income (expense):
Interest expense (23) (23) (11)
Other, net 4 4 2
Income before income taxes 494 73 567 255
Income taxes 136 136 61
Net income $358 $73 $431 $194
Net income per common share -
assuming dilution $0.42 $0.51 $0.23
Weighted average shares outstanding -
assuming dilution 850.2 850.2 855.2
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
(in millions) 2005 2004
Assets
Current assets:
Cash, cash equivalents and short-
term investments $956 $1,640
Trade accounts receivable, net 953 900
Inventories 387 360
Other current assets 461 389
Total current assets 2,757 3,289
Property, plant and equipment, net 924 870
Intangible assets, net 3,373 3,340
Investments 619 529
Other assets 146 142
$7,819 $8,170
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings due within one year $430 $1,228
Accounts payable and accrued
expenses 945 1,010
Other current liabilities 409 367
Total current liabilities 1,784 2,605
Long-term debt 1,115 1,139
Other long-term liabilities 530 401
Stockholders' equity 4,390 4,025
$7,819 $8,170
Boston Scientific Corporation
Worldwide Sales
Regional Summary
(Unaudited)
Three Months Ended Change
March 31, As Reported Constant
2005 2004 Currency Basis Currency Basis
(in millions)
Domestic $1,005 $576 74% 74%
Europe 299 235 27% 21%
Japan 151 155 (3%) (5%)
Inter-Continental 160 116 38% 32%
International 610 506 21% 16%
Worldwide $1,615 $1,082 49% 47%
Boston Scientific Corporation
Worldwide Sales
Divisional Summary
(Unaudited)
Three Months Ended Change
March 31, As Reported Constant
2005 2004 Currency Basis Currency Basis
(in millions)
Cardiovascular $1,192 $723 65% 63%
Electrophysiology 32 32 0% (2%)
Neurovascular 69 64 8% 4%
Cardiovascular 1,293 819 58% 56%
Oncology 50 46 9% 7%
Endoscopy 167 158 6% 4%
Urology 72 59 22% 19%
Endosurgery 289 263 10% 8%
Neuromodulation 33
Worldwide $1,615 $1,082 49% 47%
| Contacts |
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Milan Kofol (508-650-8569)
Investor Relations
Boston Scientific Corporation |
Paul Donovan (508-650-8541)
Media Relations
Boston Scientific Corporation
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