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IRADIMED: Radimed Corporation Announces Third Quarter 2015 Financial Results

The following excerpt is from the company's SEC filing.

Revenue grows 114.9% compared to the same quarter last year

Reports third quarter 2015 non-GAAP diluted EPS of $0.19

Increases annual revenue and non-GAAP earnings guidance

Winter Springs, Florida, October 30, 2015 IRADIMED CORPORATION (NASDAQ:IRMD), the only known provider of non-magnetic intravenous (IV) infusion pump systems that are designed to be safe for use during magnetic resonance imaging (MRI) procedures, today announced financial results for the three months ended September 30, 2015.

For the third quarter ended September 30, 2015, the Company reported revenue of $8.2 millio n, an increase of 114.9% compared to $3.8 million for the third quarter of 2014. Net income was $1.9 million, or $0.15 per diluted share, compared with net income of $0.2 million, or $0.02 per diluted share for the third quarter of 2014.

The Company reported non-GAAP net income of $2.3 million for the third quarter ended September 30, 2015, an increase of 570.2% over the third quarter of 2014. Non-GAAP earnings per diluted share increased 533.3% to $0.19 per diluted share for the third quarter 2015, compared to $0.03 in the third quarter 2014. Free cash flow was $2.3 million for the quarter ended September 30, 2015.

Gross profit margin was 80.6% for the third quarter of 2015, compared to 74.8% for the third quarter of 2014. Domestic sales were 94.5% of total revenue for the third quarter 2015, compared to 92.6% for the third quarter 2014.

We are very pleased with these results and with the way our teams are performing. Both revenue and non-GAAP earnings exceeded our guidance. Bookings continue to give us confidence that we will continue to see growth. During the quarter, we also achieved higher production levels of our pump systems and look to continue these increases over the coming quarters. It is the strength in bookings and production increases that have led us to increase our full year outlook. said Roger Susi, President and Chief Executive Officer of the Company.

Financial Guidance

For the fourth quarter 2015, the Company expects revenue of approximately $8.5 to $8.6 million and non-GAAP diluted EPS of $0.19 to $0.20.

The Company increased its full year 2015 revenue guidance and now expects to report revenue of $31.3 million to $31.4 million, an increase from the previous guidance of $30.2 million to $30.4 million. The Company also increased its full year 2015 non-GAAP diluted earnings per share guidance and now expects non-GAAP diluted earnings per share of $0.68 to $0.69, an increase from the previous guidance of $0.63 to $0.65.

Use of non-GAAP Financial Measures

The Company believes the use of non-GAAP net income, free cash flow and infrequent income tax items are helpful to our investors. These measures, which we refer to as our non-GAAP financial measures, are not prepared in accordance with GAAP. We calculate non-GAAP net income as net income excluding stock-based compensation expense, net of tax. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a companys non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allow for meaningful comparisons between our operating results from period to period. We calculate free cash flow as net cash provided by operating activities less net cash used in investing activities for purchases of property and equipment. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic acquisitions and strengthening our balance sheet. Infrequent tax items are considered based on their nature and are excluded from the provision for income taxes as...