CardioNet, Inc. Updates Full Year 2009 Guidance, Industry Dynamics and Future Strategies
June 30 2009 - 8:05PM
Business Wire
CardioNet (Nasdaq:BEAT), a leading wireless medical technology
company with an initial focus on the diagnosis and monitoring of
cardiac arrhythmias, announced today an adjustment to its
previously stated full year 2009 financial guidance.
The Company is revising its revenue guidance for full year 2009
to reflect growth of 30%-33% compared to the full year 2008 and now
expects revenue for 2009 to be in the range of $156 million to $160
million. The revenue guidance is based on lower than anticipated
commercial reimbursement rates. Volume growth continues to be
significant, but is expected to be somewhat lower than the Company
had anticipated. The Company believes that the long-term outlook
for its business and the wireless healthcare industry remains
highly attractive, and CardioNet intends to continue its previously
announced investments in its sales and marketing organization,
product development and clinical research programs. Other areas of
spending will be curtailed and restructured to partially offset the
negative price and volume dynamics. Accordingly, the Company is now
expecting adjusted earnings per diluted share for full year 2009 to
be in the range of $0.30 to $0.35 excluding any impact of NOLs,
other tax related items and any nonrecurring charges, with the
majority of the impact affecting results in the second half of
2009. At this time, the Company is not in a position to provide
revenue or earnings guidance for 2010 and 2011. The Company may
issue such guidance if greater certainty develops with respect to
long-term reimbursement and physician adoption. CardioNet�s balance
sheet remains strong with no debt and substantial cash.
Randy Thurman, Chairman, President and Chief Executive Officer
of CardioNet said, �With nearly 250,000 patients monitored, over
200 million covered lives and 28 completed clinical research
studies, CardioNet is the unquestioned leader in mobile cardiac
outpatient telemetry. The Company continues to develop clinically
relevant product innovations, as demonstrated by the recent
introduction of SomNetTM, a new clinical indicator for common sleep
disorders. While only on the market for two weeks, CardioNet has
seen over 100 physician practices enroll in the program.
Additionally, the Company just completed training for its expanded
sales organization and expects to have over 140 experienced
cardiology account executives fully deployed beginning in the third
quarter of 2009. CardioNet believes this will be the largest sales
organization in the world dedicated to wireless healthcare. The
second half of the year will also be marked by the Company�s entry
into the hospital and cardiac thoracic surgery markets and by the
nationwide introduction of new physician programs aimed at
accelerating the use of MCOT.�
The Company also intends to expand its business base with the
previously announced acquisition of Biotel Inc., which includes the
leading wireless event monitor and accelerates development of
CardioNet�s wireless MCOT technology. In addition to giving
CardioNet what the Company sees as the best array of product
technology in the industry, Biotel positions the Company to enter
the clinical research industry through Biotel�s Agility division.
To illustrate the attractiveness of this strategy, CardioNet was
just selected by a major global pharmaceutical company to provide
clinical research support for drug development. Biotel�s Agility
division will accelerate growth of this attractive source of
revenue that is not directly subject to reimbursement dynamics.
Strategic and synergistic acquisitions are likely to be an
important aspect of the Company�s future.
Randy Thurman added, �Year to date our MCOT� patient volume is
up over 60% compared to prior year and projected to be up over 60%
for the full year. While revenue is somewhat lower than planned,
earnings will also reflect our investments for long-term growth and
the anticipated lower commercial reimbursements rates. We believe
the dynamics of robust growth in a highly cost conscious healthcare
reform market will continue long-term. As such, CardioNet will be
structured to produce long-term shareholder value in that
environment.
�CardioNet is the pioneer in the field of wireless cardiac
arrhythmia monitoring and diagnosis. In contrast to healthcare
technologies that have long existed, we are in the challenging
position of forecasting the future growth of a revolutionary new
technology in the midst of dramatic healthcare reform and
overwhelming pressure on costs. As we continue to build our
leadership position with MCOT�, forecasting the business results
will become more certain.
�We remain confident that wireless healthcare technologies will
be one of the most dramatic, revolutionary changes in human health
for the next decade and beyond. We believe that the cost benefit
advantages and superior clinical outcomes of technologies such as
MCOT� will prevail even in this cost driven reimbursement
environment. With our proven platform technology, expanding
wireless applications and entry into new related business segments,
CardioNet, our physicians, patients and shareholders are positioned
to benefit from our strategy over the long term.�
Conference Call
CardioNet, Inc. will host an earnings conference call on
Wednesday, July 1, 2009, at 8:30 AM Eastern Time. The call will be
simultaneously webcast on the investor information page of the
Company�s website, www.cardionet.com. The call will be archived on
the Company�s website and will also be available for two weeks via
phone at 1-888-286-8010, access code 51216355.
CardioNet is the leading provider of ambulatory, continuous,
real-time outpatient management solutions for monitoring relevant
and timely clinical information regarding an individual's health.
CardioNet's initial efforts are focused on the diagnosis and
monitoring of cardiac arrhythmias, or heart rhythm disorders, with
a solution that it markets as Mobile Cardiac Outpatient TelemetryTM
(MCOT�). More information can be found at
http://www.cardionet.com.
Forward-Looking Statements
This press release includes certain forward-looking statements
within the meaning of the "Safe Harbor" provisions of the Private
Securities Litigation Reform Act of 1995 regarding, among other
things, our growth prospects, the prospects for our products and
our confidence in the Company's future. These statements may be
identified by words such as "expect," "anticipate," "estimate,"
"intend," "plan," "believe," "promises" and other words and terms
of similar meaning. Such forward-looking statements are based on
current expectations and involve inherent risks and uncertainties,
including important factors that could delay, divert, or change any
of them, and could cause actual outcomes and results to differ
materially from current expectations. These factors include, among
other things, the success of our sales and marketing initiatives,
our ability to attract and retain talented executive management and
sales personnel, our ability to identify acquisition candidates,
acquire them on attractive terms and integrate their operations
into our business, the commercialization of new products, market
factors, internal research and development initiatives, partnered
research and development initiatives, competitive product
development, changes in governmental regulations and legislation,
changes to reimbursement levels for our products, the continued
consolidation of payors, acceptance of our new products and
services and patent protection and litigation. For further details
and a discussion of these and other risks and uncertainties, please
see our public filings with the Securities and Exchange Commission,
including our latest periodic reports on Form 10-K and 10-Q. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
HeartBeam (NASDAQ:BEAT)
Historical Stock Chart
From Sep 2024 to Oct 2024
HeartBeam (NASDAQ:BEAT)
Historical Stock Chart
From Oct 2023 to Oct 2024