VISICU Reports Second Quarter Results

  
    
  
  
    
      VISICU, Inc. (Nasdaq:EICU), a healthcare information technology and 
      clinical solutions company focused on transforming the delivery of care 
      to the highest acuity patients in the hospital, today announced 
      financial results for the second quarter of 2007. The company reported 
      significantly higher revenue and operating income for the second quarter 
      over the same quarter from the prior year:
    
    
      
        Revenue for the second quarter was $9.1 million, a 20% increase over 
        the same quarter last year.
      
      
        Adjusted operating income for the second quarter increased to $2.5 
        million, resulting in a 27% adjusted operating margin, from adjusted 
        operating income of $1.8 million and an adjusted operating margin of 
        24% for the same quarter last year. Adjusted operating income and 
        adjusted operating margin exclude non-cash stock-based compensation 
        expense included in the GAAP results.
      
      
        GAAP operating income for the second quarter increased to $1.7 
        million, resulting in a 19% operating margin, from GAAP operating 
        income of $1.1 million and operating margin of 15% for the same 
        quarter last year. GAAP operating income includes non-cash stock-based 
        compensation expense of $741,000 and $658,000 in the second quarter of 
        2007 and 2006, respectively.
      
      
        Net income for the second quarter of 2007 increased to $2.1 million, 
        or $0.06 per diluted share, from $1.2 million, or $0.04 per diluted 
        share for the same quarter last year.
      
      
        Total revenue backlog at the end of the second quarter was $63.8 
        million.
      
    
    
      “We are pleased with our strong operating 
      results and financial position, and we are focused on investing 
      resources to execute on sales and marketing initiatives to accelerate 
      market adoption,” said Frank Sample, Chairman 
      and CEO of VISICU. “We have yet to reach the 
      tipping point in the market and are in the midst of transitioning from 
      early adopters to the early majority. This has lengthened our sales 
      cycle and impacted year to date new account sales activity. Although our 
      backlog has decreased, we are experiencing increased market interest for 
      our solution and our sales pipeline is expanding. As a result, I am very 
      optimistic about the mid to long term growth prospects for the business.”
    
    
      Conference Call Information
    
    
      A conference call and audio webcast will be held today, Thursday, July, 
      26, 2007 at 4:30 p.m. EST. Participants can access the call by dialing 
      719-457-2651 or access the audio webcast directly at http://investors.visicu.com/eventdetail.cfm?eventid=42218 
      or through the company's website at www.VISICU.com. 
      A replay of the call will be available approximately three hours after 
      the call has ended and will be available until 11:59 p.m. (EDT) on 
      Thursday, August 2, 2007. To access the replay, dial 719-457-0820 and 
      enter the conference passcode number: 8623384. A replay will also be 
      archived online on the company's corporate website at www.VISICU.com.
    
    
      About VISICU, Inc.
    
    
      VISICU, Inc. is a healthcare information technology and clinical 
      solutions company transforming the delivery of critical care through its 
      eICU Program. The eICU Program restructures the practice of critical 
      care by using remote monitoring technology to allow systems to 
      centralize scarce critical care trained staff to improve coverage and to 
      allow intervention to prevent or manage crises. For more information, 
      visit www.VISICU.com. VISICU® 
      and eICU® are registered trademarks of VISICU, 
      Inc. All rights reserved. visicu-f
    
    
      Safe Harbor Statement
    
    
      This release contains forward-looking statements that are made pursuant 
      to the provisions of Section 21E of the Securities and Exchange Act of 
      1934, as amended. These forward-looking statements involve a number of 
      risks and uncertainties. Investors are cautioned that statements in this 
      press release that are not strictly historical statements constitute 
      forward-looking statements. It is important to note that the company’s 
      performance, and actual results, financial condition or business could 
      differ materially from those expressed in the forward-looking 
      statements. The words “outlook”, 
      “positions us”, “guidance”, 
      “expects”, “estimates”, 
      “intends”, “plans”, 
      “projects”, “anticipates”, 
      “believes” or the 
      negative of these words, variations thereof or similar expressions are 
      intended to identify such forward-looking statements. Factors that could 
      cause or contribute to such differences include, but are not limited to: 
      market acceptance of the company’s principal 
      product offering and any new product releases, the performance and 
      reliability of our products and services, the company’s 
      ability to attract and retain new customers, renewal rates of the company’s 
      existing customers, financial and budget constraints of hospitals, 
      changes in the company’s or competitors’ 
      pricing practices, quarterly operating results may vary, stock price may 
      be volatile, changes in the healthcare industry, the introduction or 
      availability of competing products or services and other competitive 
      factors, changes in the government regulation of our products and 
      services, and the possibility of unfavorable outcomes in regulatory and 
      legal proceedings relating to VISICU's patent that are pending currently 
      or that could be initiated in the future. Additional discussion of these 
      and other factors affecting the company’s 
      business is contained in the company’s 
      periodic filings with the Securities and Exchange Commission. The 
      company undertakes no obligation to update forward-looking statements to 
      reflect changed assumptions the occurrence of unanticipated events or 
      changes in future operating results, financial condition or business 
      over time.
    
    
      Use of Non-GAAP Financial Measures
    
    
      Adjusted operating income (loss) and adjusted operating margins as 
      described in this release and in the attached financial statement tables 
      are not measures of financial performance under generally accepted 
      accounting principles (GAAP) and should not be considered a substitute 
      for or superior to GAAP operating income (loss) and operating margins. 
      Management believes the non-GAAP results provide useful information to 
      both management and investors by excluding certain expenses that may not 
      be indicative of our core results and provides for consistency in 
      financial reporting. Management provides these non-GAAP financial 
      measures because it believes they provide greater transparency with 
      respect to supplemental information used by management in its financial 
      and operational decision making. Specifically, these non-GAAP measures 
      are provided to enhance investor's overall understanding of the company’s 
      current financial performance and the company’s 
      future prospects. For the reconciliation of adjusted operating income 
      (loss) and operating margins to GAAP, please refer to the information 
      included in the attached tables of this press release.
    
    
      
        
          Visicu, Inc.
        
      
      
        
          Condensed Statements of Operations
        
      
      
        
          (In thousands, except per share data)
        
      
      
        
          (Unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Three Months Ended
        
        
        
        
          Six Months Ended
        
      
      
        
        
        
          June 30,
        
        
        
        
          June 30,
        
      
      
        
        
        
           
        
        
          2006
        
        
           
        
        
           
        
        
           
        
        
          2007
        
        
           
        
        
           
        
        
           
        
        
          2006
        
        
           
        
        
           
        
        
           
        
        
          2007
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues
        
        
          $
        
        
          7,529
        
        
        
        
        
        
          $
        
        
          9,054
        
        
        
        
        
        
          $
        
        
          14,198
        
        
        
        
        
        
          $
        
        
          17,794
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Direct cost of revenues
        
        
           
        
        
          1,438
        
        
           
        
        
           
        
        
           
        
        
          1,717
        
        
           
        
        
           
        
        
           
        
        
          2,841
        
        
           
        
        
           
        
        
           
        
        
          3,363
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gross profit
        
        
        
        
          6,091
        
        
        
        
        
        
        
        
          7,337
        
        
        
        
        
        
        
        
          11,357
        
        
        
        
        
        
        
        
          14,431
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating expenses
        
        
           
        
        
          4,975
        
        
           
        
        
           
        
        
           
        
        
          5,601
        
        
           
        
        
           
        
        
           
        
        
          9,789
        
        
           
        
        
           
        
        
           
        
        
          11,283
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income from operations
        
        
        
        
          1,116
        
        
        
        
        
        
        
        
          1,736
        
        
        
        
        
        
        
        
          1,568
        
        
        
        
        
        
        
        
          3,148
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest income
        
        
        
        
          1,185
        
        
        
        
        
        
        
        
          1,667
        
        
        
        
        
        
        
        
          1,325
        
        
        
        
        
        
        
        
          3,299
        
        
        
      
      
        
          Interest expense
        
        
           
        
        
          (2
        
        
          )
        
        
           
        
        
           
        
        
          (1
        
        
          )
        
        
           
        
        
           
        
        
          (4
        
        
          )
        
        
           
        
        
           
        
        
          (7
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income before income taxes
        
        
        
        
          2,299
        
        
        
        
        
        
        
        
          3,402
        
        
        
        
        
        
        
        
          2,889
        
        
        
        
        
        
        
        
          6,440
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax expense
        
        
           
        
        
          1,056
        
        
           
        
        
           
        
        
           
        
        
          1,271
        
        
           
        
        
           
        
        
           
        
        
          1,332
        
        
           
        
        
           
        
        
           
        
        
          2,336
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
          $
        
        
          1,243
        
        
           
        
        
           
        
        
          $
        
        
          2,131
        
        
           
        
        
           
        
        
          $
        
        
          1,557
        
        
           
        
        
           
        
        
          $
        
        
          4,104
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
          $
        
        
          0.04
        
        
        
        
        
        
          $
        
        
          0.07
        
        
        
        
        
        
          $
        
        
          0.09
        
        
        
        
        
        
          $
        
        
          0.13
        
        
        
      
      
        
          Diluted
        
        
          $
        
        
          0.04
        
        
        
        
        
        
          $
        
        
          0.06
        
        
        
        
        
        
          $
        
        
          0.05
        
        
        
        
        
        
          $
        
        
          0.12
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Weighted-average shares outstanding used in computing per share 
            amounts:
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          29,080
        
        
        
        
        
        
        
        
          32,516
        
        
        
        
        
        
        
        
          17,305
        
        
        
        
        
        
        
        
          32,502
        
        
        
      
      
        
          Diluted
        
        
        
        
          33,844
        
        
        
        
        
        
        
        
          34,391
        
        
        
        
        
        
        
        
          30,799
        
        
        
        
        
        
        
        
          34,541
        
        
        
      
    
    
      
        
          Visicu, Inc.
        
      
      
        
          Reconciliation Between GAAP and Adjusted Operating Income
        
      
      
        
          (In thousands)
        
      
      
        
          (Unaudited)
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Three Months Ended June 30,
        
      
      
        
        
        
           
        
        
          2006
        
        
           
        
        
           
        
        
          2007
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Income from operations
        
        
          $
        
        
          1,116
        
        
        
        
          $
        
        
          1,736
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Non-cash stock-based compensation
        
        
           
        
        
          658
        
        
           
        
        
           
        
        
          741
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Adjusted income from operations
        
        
          $
        
        
          1,774
        
        
           
        
        
          $
        
        
          2,477
        
      
      
        
           
        
      
      
        
           
        
      
      
        
           
        
      
      
        
          Visicu, Inc.
        
      
      
        
          Reconciliation Between GAAP and Adjusted Operating Income
        
      
      
        
          (In thousands)
        
      
      
        
          (Unaudited)
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Six Months Ended June 30,
        
      
      
        
        
        
           
        
        
          2006
        
        
           
        
        
           
        
        
          2007
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Income from operations
        
        
          $
        
        
          1,568
        
        
        
        
          $
        
        
          3,148
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Non-cash stock-based compensation
        
        
           
        
        
          1,229
        
        
           
        
        
           
        
        
          1,426
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Adjusted income from operations
        
        
          $
        
        
          2,797
        
        
           
        
        
          $
        
        
          4,574
        
      
    
    
      
        
          Visicu, Inc.
        
      
      
        
          Condensed Balance Sheets
        
      
      
        
          (In thousands)
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          
            December 31,
          
        
        
        
        
          June 30,
        
      
      
        
        
        
          2006
        
        
          
             
          
        
        
          2007
        
      
      
        
        
        
        
        
        
        
          (Unaudited)
        
      
      
        
          Assets
        
        
        
        
        
        
        
      
      
        
          Current assets:
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
          $
        
        
          74,188
        
        
        
        
          $
        
        
          102,873
        
      
      
        
          Marketable securities
        
        
        
        
          46,047
        
        
        
        
        
        
          26,900
        
      
      
        
          Accounts receivable
        
        
        
        
          11,465
        
        
        
        
        
        
          5,789
        
      
      
        
          Prepaid expenses and other current assets
        
        
        
        
          1,686
        
        
        
        
        
        
          1,182
        
      
      
        
          Deferred tax assets
        
        
           
        
        
          7,915
        
        
           
        
        
           
        
        
          6,644
        
      
      
        
          Total current assets
        
        
        
        
          141,301
        
        
        
        
        
        
          143,388
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Property and equipment, net
        
        
        
        
          1,631
        
        
        
        
        
        
          1,561
        
      
      
        
          Deferred contract costs
        
        
        
        
          4,477
        
        
        
        
        
        
          4,406
        
      
      
        
          Marketable securities
        
        
        
        
          2,960
        
        
        
        
        
        
          -
        
      
      
        
          Deferred tax assets
        
        
        
        
          6,140
        
        
        
        
        
        
          6,073
        
      
      
        
          Other assets
        
        
           
        
        
          503
        
        
           
        
        
           
        
        
          438
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Total assets
        
        
          $
        
        
          157,012
        
        
           
        
        
          $
        
        
          155,866
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Liabilities and stockholders’ equity
        
        
        
        
        
        
        
      
      
        
          Current liabilities:
        
        
        
        
        
        
        
      
      
        
          Accounts payable and accrued expenses
        
        
          $
        
        
          1,244
        
        
        
        
          $
        
        
          849
        
      
      
        
          Accrued compensation and related costs
        
        
        
        
          1,581
        
        
        
        
        
        
          1,374
        
      
      
        
          Deferred revenue
        
        
        
        
          30,290
        
        
        
        
        
        
          26,616
        
      
      
        
          Other current liabilities
        
        
           
        
        
          27
        
        
           
        
        
           
        
        
          27
        
      
      
        
          Total current liabilities
        
        
        
        
          33,142
        
        
        
        
        
        
          28,866
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Other long-term liabilities
        
        
        
        
          468
        
        
        
        
        
        
          369
        
      
      
        
          Deferred revenue
        
        
           
        
        
          19,074
        
        
           
        
        
           
        
        
          14,944
        
      
      
        
          Total liabilities
        
        
        
        
          52,684
        
        
        
        
        
        
          44,179
        
      
      
        
          
            Stockholders’ equity
          
        
        
           
        
        
          104,328
        
        
           
        
        
           
        
        
          111,687
        
      
      
        
          Total liabilities and stockholders’ equity
        
        
          $
        
        
          157,012
        
        
           
        
        
          $
        
        
          155,866
        
      
    
    
      
        
          Visicu, Inc.
        
      
      
        
          Condensed Statements of Cash Flows
        
      
      
        
          (In thousands)
        
      
      
        
          (Unaudited)
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Six Months Ended June 30,
        
      
      
        
        
        
          2006
        
        
           
        
        
          2007
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
          $
        
        
          1,557
        
        
        
        
        
        
          $
        
        
          4,104
        
        
        
      
      
        
          Adjustments to reconcile net income to net cash provided by 
          operating activities
        
        
        
        
          2,336
        
        
        
        
        
        
        
        
          1,879
        
        
        
      
      
        
          Changes in operating assets and liabilities
        
        
           
        
        
          1,495
        
        
           
        
        
           
        
        
           
        
        
          (864
        
        
          )
        
      
      
        
          Net cash provided by operating activities
        
        
        
        
          5,388
        
        
        
        
        
        
        
        
          5,119
        
        
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Purchases of property and equipment
        
        
        
        
          (245
        
        
          )
        
        
        
        
        
        
          (354
        
        
          )
        
      
      
        
          Maturities (purchases) of marketable securities
        
        
        
        
          (19,014
        
        
          )
        
        
        
        
        
        
          22,107
        
        
        
      
      
        
          Other investing activity changes
        
        
           
        
        
          (7
        
        
          )
        
        
           
        
        
           
        
        
          (179
        
        
          )
        
      
      
        
          Net cash provided by (used in) investing activities
        
        
        
        
          (19,266
        
        
          )
        
        
        
        
        
        
          21,574
        
        
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Proceeds from issuance of common stock, net of costs
        
        
        
        
          100,720
        
        
        
        
        
        
        
        
          -
        
        
        
      
      
        
          Exercise of options to purchase common stock
        
        
        
        
          792
        
        
        
        
        
        
        
        
          551
        
        
        
      
      
        
          Excess tax benefit from stock-based compensation
        
        
        
        
          113
        
        
        
        
        
        
        
        
          1,453
        
        
        
      
      
        
          Other financing activity changes
        
        
           
        
        
          (12
        
        
          )
        
        
           
        
        
           
        
        
          (12
        
        
          )
        
      
      
        
          Net cash provided by financing activities
        
        
           
        
        
          101,613
        
        
           
        
        
           
        
        
           
        
        
          1,992
        
        
           
        
      
      
        
          Net increase in cash and cash equivalents
        
        
        
        
          87,735
        
        
        
        
        
        
        
        
          28,685
        
        
        
      
      
        
          Cash and cash equivalents at beginning of period
        
        
           
        
        
          11,379
        
        
           
        
        
           
        
        
           
        
        
          74,188
        
        
           
        
      
      
        
          Cash and cash equivalents at end of period
        
        
          $
        
        
          99,114
        
        
           
        
        
           
        
        
          $
        
        
          102,873