Volcano Corporation (VOLC)

[madtony]

http://www.sacbee.com/103/story/123085.html
Earnings roundup: Volcano revenue rises 20% in fourth quarter
By Jim Downing - Bee Staff Writer

Last Updated 12:03 am PST Wednesday, February 14, 2007
Story appeared in BUSINESS section, Page D3

Rancho Cordova-based Volcano Corp. closed out the 2006 business year even stronger than expected.

Tuesday, the company announced a 20 percent increase in fourth-quarter revenue and a profit of $1.4 million, or 4 cents per share.

The revenue of $29.5 million for the quarter ending Dec. 31 was slightly higher than the company's Jan. 9 projection of $29 million, and well above an earlier consensus estimate from analysts of $26.6 million.

"We had a terrific 2006," said Chief Executive Scott Huennekens in a conference call with investors and analysts. "As we begin 2007, we are achieving our strategic, technology and financial objectives."

Volcano makes ultrasonic catheter systems used by cardiologists to evaluate the condition of coronary arteries and guide treatments for heart disease.

Chief Financial Officer John Dahldorf said the majority of the quarter's revenue growth stemmed from a 25 percent increase in sales of the firm's disposable ultrasonic catheters, which sell for about $640 each.

Volcano went public in June. Since then, its share value is up 125 percent, making it one of the nation's best-performing new stocks and the most successful Sacramento-area initial public offerings since the dot-com boom. The company employs about 400 people in Rancho Cordova.

Thomas Gunderson, a senior research analyst at Piper Jaffray & Co., said Volcano has impressed Wall Street investors by consistently meeting or beating revenue and product roll-out targets.

"Volcano has high credibility," he said.

For the year ending Dec. 31, Volcano reported revenue of $103 million and a net loss of $8.6 million.

For 2007, Dahldorf projected revenue of $120 million. However, he anticipated a net loss for the year of 15 cents a share, because of expenses tied to increased sales, marketing and research efforts, as well as stock-based compensation of $6.8 million.

Volcano's stock closed Tuesday at $19.70, up 20 cents or 1 percent, on the Nasdaq. The earnings announcement came after financial markets had closed, but the stock continued rising in after-hours trading.