Conference Call Scheduled for Wednesday, July 1, 2009 at 8:30 am
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.
