Sonos (NASDAQ:SONO)
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SonoSite, Inc. (NASDAQ:SONO), the world leader and
specialist in hand-carried ultrasound for the point-of-care, today
provided preliminary revenue results for the fourth quarter and year
ended December 31, 2008. The company said that fourth quarter revenue
grew 8% to approximately $70 million compared to the prior year’s fourth
quarter. For the year, worldwide revenue is estimated to have increased
by 19% to approximately $243 million. Changes in foreign currency rates
decreased worldwide revenue by an estimated 4% in the fourth quarter and
had a favorable impact of 0.6% on the year.
“The M-Turbo® and S Series™ product lines drove a year of record revenue
and operating income in 2008,” said Kevin M. Goodwin, SonoSite President
and CEO. “We gained operating leverage and expect to achieve an
operating margin in 2008 that is toward the upper end of our guidance of
9-10%, as compared to 2.2% in 2007. We are particularly pleased with
this accomplishment in light of the difficult US economic environment
and its impact on hospital capital spending, which we expect will
continue into 2009. Customers deferred, but did not cancel,
approximately 10% of our forecasted revenue in the fourth quarter.”
Mr. Goodwin continued, “At this juncture in the year, given the US
hospital capital spending environment and an anticipated foreign
currency headwind, we are planning for revenue growth of 5-10% in 2009
at current exchange rates, with relatively flat revenue growth in the
first three quarters. However, as a result of the company’s forward
planning, by carefully managing costs, yet continuing to invest in
product development, market introductions and channel expansion, we are
targeting to increase operating income by 10-20% in 2009. We have the
financial resources, products, technology and market leadership to
navigate through this environment and position us well for future,
long-term growth.”
As previously disclosed, the company has taken a $3 million charge for
expenses related to the termination of acquisition talks and severance
payments which were included in the company’s 2008 operating margin
guidance provided on October 23, 2008. The fourth quarter of 2008 will
also include a gain of $15.7 million resulting from the repurchase of
$80.3 million of senior convertible notes the company issued in July
2007.
Mr. Goodwin is presenting today at the J.P. Morgan Annual Healthcare
Conference at 3:00 pm Pacific Time in San Francisco. An audio replay of
Mr. Goodwin’s conference presentation can be accessed via the Investors
Section of SonoSite’s website at www.sonosite.com
and will be available for 30 days.
Fourth quarter 2008 financial estimates are preliminary. SonoSite plans
to report 2008 financial results on February 12, 2009, after the close
of the financial markets at 1:00 pm Pacific Time.
Conference Call Information
SonoSite will hold a conference call on February 12th at 1:30
pm PT/4:30 pm ET. The call will be broadcast live and can be accessed
via the “Investors” Section of SonoSite’s website at www.sonosite.com.
A replay of the audio webcast will be available beginning February 12,
2009, at 4:30 pm (PT) until February 26, 2009, at 10:00 pm (PT) by
dialing 719-457-0820 or toll-free 888-203-1112. The confirmation code
7024347 is required to access the replay.
About SonoSite
SonoSite, Inc. (www.sonosite.com),
is the innovator and world leader in hand-carried ultrasound.
Headquartered near Seattle, the company is represented by ten
subsidiaries and a global distribution network in over 100 countries.
SonoSite’s small, lightweight systems are expanding the use of
ultrasound across the clinical spectrum by cost-effectively bringing
high-performance ultrasound to the point of patient care. The company
employs over 600 people worldwide.
Forward-Looking Information and the
Private Litigation Reform Act of 1995
Certain statements in this press release relating to the market
acceptance of our products, possible future sales relating to expected
orders, and our future financial position and operating results are
“forward-looking statements” for the purposes of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on the opinions and estimates
of our management at the time the statements are made and are subject to
risks and uncertainties that could cause actual results to differ
materially from those expected or implied by the forward-looking
statements. These statements are not guaranties of future performance
and are subject to known and unknown risks and uncertainties and are
based on potentially inaccurate assumptions. Factors that could affect
the rate and extent of market acceptance of our products, the receipt of
expected orders, and our financial performance include our ability to
successfully manufacture, market and sell our ultrasound systems, our
ability to accurately forecast customer demand for our products, our
customers’ ability to finance the purchase of our systems, including the
effect of reduced spending by hospitals, our ability to manufacture and
ship our systems in a timely manner to meet customer demand, variability
in quarterly results caused by the timing of large project orders from
governmental or international entities and the seasonality of hospital
purchasing patterns, timely receipts of regulatory approvals to market
and sell our products, regulatory and reimbursement changes in various
national health care markets, constraints in government and public
health spending, the ability of our distribution partners and other
sales channels to market and sell our products and any changes to such
channels, the impact of patent litigation, our ability to execute our
acquisition strategy, the effect of transactions and activities
associated with our issuance of senior convertible debt in July 2007,
including a repurchase of a portion of the debt, on the market price of
our common stock, and as well as other factors contained in the Item 1A.
“Risk Factors” section of our most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission. We caution readers
not to place undue reliance upon these forward-looking statements that
speak only as to the date of this release. We undertake no obligation to
publicly revise any forward-looking statements to reflect new
information, events or circumstances after the date of this release or
to reflect the occurrence of unanticipated events.