AtriCure, a provider of cardiac surgical ablation systems and systems for the exclusion of the left atrial appendage, has reported a revenue of $14.2m for the second quarter of 2010, a $0.4m increase when compared to second quarter 2009 revenue of $13.8m.
Revenue from product sales in the US was $11.8m. International revenue was $2.3m, which included a one-time unfavorable impact of $0.4m associated with transitioning a large international market from a distributor stocking model to a direct selling model.
Gross profit was $11.2m as compared to $10.7m for the second quarter of 2009. The improvement in gross margin was primarily due to an increased mix of revenue from US sales and a reduction in product costs, partially offset by revenue from new products, which have a lower gross margin than existing disposable products.
Operating expenses on a GAAP basis were consistent with operating expenses of $11.7m. Operating expenses included a reduction of $0.7m in research and development expenses, due primarily to reductions in product development expenditures and clinical trial enrollment expenses.
David Drachman, president and CEO, said: “As a direct result of the skillfulness and resolve of the men and women of AtriCure, we have made substantial progress toward achieving our strategic priorities and are encouraged by our second quarter operating and financial performance. The increasing strength of our product portfolio and sales force is driving market share gains. Additionally, our commitment to align costs with revenue resulted in record financial performance for operating loss, net loss and net loss per share.”
“As a result of recent meetings with the FDA, we intend to file our final PMA module for our ABLATE clinical trial, which is in support of an atrial fibrillation indication, during the first quarter of 2011. Furthermore, our recently approved AtriClip system introduces AtriCure into an emerging market that is highly valued in cardiac medicine and represents a large near and long term growth platform.”