Sonos (NASDAQ:SONO)
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SonoSite, Inc. (Nasdaq:SONO) today provided preliminary third
quarter results and an updated 2006 outlook. The company said that
worldwide revenue in the third quarter of 2006 increased by
approximately 16% over the third quarter of 2005 to $40 million and that
it expects to report earnings on a GAAP basis of $0.01 to $0.02 per
diluted share. The company also said it generated positive cash flow in
the quarter and that cash, cash equivalents and investments increased
$1.7 million in the quarter to a balance of $86.0 million.
“We completed the third quarter with strong
market fundamentals as well as strong performances from a number of our
key sales territories and countries around the world,”
said Kevin M. Goodwin, SonoSite President and CEO. “However,
the breadth of our performance was not what we expected. In the U.S.,
revenue was lower than expected due to the ongoing sales force
transition, specifically the integration of 18 new sales reps to address
the physician office market and the redeployment of our core sales team
into the hospital market. In the short-term this transition is taking
longer than expected but in the long-term it will allow us to more
effectively address these large potential markets with additional sales
capacity. Our international business continued its improvement
initiatives and delivered its best growth in five quarters.
Internationally, we are putting in place the key ingredients for
long-term growth though we have more work to do to achieve our
objectives,” added Mr. Goodwin.
“In light of this transition this year, we are
revising full year 2006 revenue guidance to approximately 15% growth
over 2005 as our business units work through these transitory issues. We
expect to show good year-over-year growth in profitability with GAAP
pre-tax income in a range of $8 - $9 million which includes equity-based
compensation expense of approximately $8.3 million. Excluding the
equity-based compensation, pre-tax income is expected to double over the
prior year. We intend to continue to expand our sales capacity both in
the U.S. and international markets during 2007 and continue to increase
our research and development investment aimed at delivering several new
products over the next 24 months,” Mr. Goodwin
said.
“The opportunities in point-of-care markets
offer substantial growth potential and win-win-win opportunities for
patients, providers, and physicians both in the hospital and private
office sectors. Interest in SonoSite’s
hand-carried technology continues to be stronger than ever, yet we
clearly have been impacted by transition dynamics this year. While we
have more work to do, we believe that with time, we will be able to more
fully capitalize on these opportunities,”
concluded Mr. Goodwin.
Third quarter 2006 financial estimates are preliminary and the company
plans to report complete third quarter results on October 30, 2006 after
the close of the financial markets at 1:00 p.m. Pacific Time. Management
will host a conference call on October 30, 2006 beginning at 1:30 p.m.
Pacific Time that will be webcast on the company’s
website at www.sonosite.com. A
replay of the audio webcast will be available beginning October 30, 2006
at 4:30 p.m. PT until November 13, 2006, 12:00 midnight PT by dialing
(719) 457-0820 or toll-free (888) 203-1112. The confirmation code
2669427 is required to access the replay. The call will be also archived
on SonoSite’s website.
About SonoSite
SonoSite, Inc. (www.sonosite.com)
is the innovator and world leader in hand-carried ultrasound, with an
installed base of more than 25,000 systems. The company, headquartered
near Seattle, Washington is represented by eight subsidiaries and a
global distribution network in over 75 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 500 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
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, the outcome of the
federal appeal of a patent ruling in our favor in a patent infringement
case and expenses associated with such appeal, 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 such as the physician
office sales force to market and sell our products, as well as other
factors described under the heading, “Important
Factors that May Affect Our Business, Our Results of Operations and Our
Stock Price,” included in our latest periodic
report 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.
SonoSite, Inc. (Nasdaq:SONO) today provided preliminary third
quarter results and an updated 2006 outlook. The company said that
worldwide revenue in the third quarter of 2006 increased by
approximately 16% over the third quarter of 2005 to $40 million and
that it expects to report earnings on a GAAP basis of $0.01 to $0.02
per diluted share. The company also said it generated positive cash
flow in the quarter and that cash, cash equivalents and investments
increased $1.7 million in the quarter to a balance of $86.0 million.
"We completed the third quarter with strong market fundamentals as
well as strong performances from a number of our key sales territories
and countries around the world," said Kevin M. Goodwin, SonoSite
President and CEO. "However, the breadth of our performance was not
what we expected. In the U.S., revenue was lower than expected due to
the ongoing sales force transition, specifically the integration of 18
new sales reps to address the physician office market and the
redeployment of our core sales team into the hospital market. In the
short-term this transition is taking longer than expected but in the
long-term it will allow us to more effectively address these large
potential markets with additional sales capacity. Our international
business continued its improvement initiatives and delivered its best
growth in five quarters. Internationally, we are putting in place the
key ingredients for long-term growth though we have more work to do to
achieve our objectives," added Mr. Goodwin.
"In light of this transition this year, we are revising full year
2006 revenue guidance to approximately 15% growth over 2005 as our
business units work through these transitory issues. We expect to show
good year-over-year growth in profitability with GAAP pre-tax income
in a range of $8 - $9 million which includes equity-based compensation
expense of approximately $8.3 million. Excluding the equity-based
compensation, pre-tax income is expected to double over the prior
year. We intend to continue to expand our sales capacity both in the
U.S. and international markets during 2007 and continue to increase
our research and development investment aimed at delivering several
new products over the next 24 months," Mr. Goodwin said.
"The opportunities in point-of-care markets offer substantial
growth potential and win-win-win opportunities for patients,
providers, and physicians both in the hospital and private office
sectors. Interest in SonoSite's hand-carried technology continues to
be stronger than ever, yet we clearly have been impacted by transition
dynamics this year. While we have more work to do, we believe that
with time, we will be able to more fully capitalize on these
opportunities," concluded Mr. Goodwin.
Third quarter 2006 financial estimates are preliminary and the
company plans to report complete third quarter results on October 30,
2006 after the close of the financial markets at 1:00 p.m. Pacific
Time. Management will host a conference call on October 30, 2006
beginning at 1:30 p.m. Pacific Time that will be webcast on the
company's website at www.sonosite.com. A replay of the audio webcast
will be available beginning October 30, 2006 at 4:30 p.m. PT until
November 13, 2006, 12:00 midnight PT by dialing (719) 457-0820 or
toll-free (888) 203-1112. The confirmation code 2669427 is required to
access the replay. The call will be also archived on SonoSite's
website.
About SonoSite
SonoSite, Inc. (www.sonosite.com) is the innovator and world
leader in hand-carried ultrasound, with an installed base of more than
25,000 systems. The company, headquartered near Seattle, Washington is
represented by eight subsidiaries and a global distribution network in
over 75 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 500 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 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, the outcome of the federal appeal of a patent
ruling in our favor in a patent infringement case and expenses
associated with such appeal, 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 such as the physician office sales force to
market and sell our products, as well as other factors described under
the heading, "Important Factors that May Affect Our Business, Our
Results of Operations and Our Stock Price," included in our latest
periodic report 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.