-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NviUWXnQJ2yYHgPyuzhKx6p+ela+WSaeyxlPoqFyifxDWNL0+onddCqrwi+jf95y ciNY1tc92afKHW6f77mI2A== 0000815094-96-000002.txt : 19960207 0000815094-96-000002.hdr.sgml : 19960207 ACCESSION NUMBER: 0000815094-96-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960206 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ABIOMED INC CENTRAL INDEX KEY: 0000815094 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731] IRS NUMBER: 042743260 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09585 FILM NUMBER: 96511824 BUSINESS ADDRESS: STREET 1: 33 CHERRY HILL DR CITY: DANVERS STATE: MA ZIP: 01923 BUSINESS PHONE: 5087775410 MAIL ADDRESS: STREET 1: 33 CHERRY HILL DRIVE CITY: DANVERS STATE: MA ZIP: 01923 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended DECEMBER 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-9585 ABIOMED, INC. (Exact name of registrant as specified in its charter) DELAWARE 04-2743260 (State of incorporation) (I.R.S. Employer No.) 33 CHERRY HILL DRIVE DANVERS, MASSACHUSETTS 01923 (Address of principal executive offices, including zip code) (508) 777-5410 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) or the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] As of December 31, 1995, there were 5,517,458 shares outstanding of the registrant's Common Stock, $.01 par value, and 1,428,000 shares outstanding of the registrant's Class A Common Stock, $.01 par value. ABIOMED, INC. AND SUBSIDIARIES TABLE OF CONTENTS
Page No. Part I - Financial Information: Item 1. Financial Statements Consolidated Balance Sheets December 31, 1995 and March 31, 1995 3-4 Consolidated Statements of Operations Three and Nine Months Ended December 31, 1995 and December 31,1994 5 Consolidated Statements of Cash Flows Nine Months Ended December 31, 1995 and December 31, 1994 6 Notes to Consolidated Financial Statements 7-9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10-14 Part II - Other Information 15 Signatures 15
ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS ASSETS
December 31, 1995 March 31, 1995 (unaudited) (audited) Current Assets: Cash and cash equivalents (Note 6) $1,719,315 $614,091 Short-term investments (Note 6) 7,657,505 3,876,943 Accounts receivable, net 2,377,114 1,775,734 Inventories (Note 3) 1,540,070 1,409,280 Prepaid expenses and other current assets 207,271 53,830 Total current assets 13,501,275 7,729,878 Investments : Long-term marketable securities (Note 6) 1,525,463 6,533,490 Property and equipment, at cost: Machinery and equipment 2,287,859 2,189,139 Furniture and fixtures 149,842 122,934 Leasehold improvements 351,065 279,181 2,788,766 2,591,254 Less: Accumulated depreciation and amortization 2,265,297 2,124,234 523,469 467,020 Other long-term assets, net (Note 7) 662,693 - - $16,212,900 $14,730,388
The accompanying notes are an integral part of these consolidated financial statements. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS (continued) CONSOLIDATED BALANCE SHEETS (continued) LIABILITIES AND STOCKHOLDERS' INVESTMENT
December 31, 1995 March 31, 1995 (unaudited) (audited) Current Liabilities: Accounts payable $952,844 $198,280 Accrued expenses 1,498,808 1,227,379 Total current liabilities 2,451,652 1,425,659 Stockholders' Investment (Note 4): Class B Preferred Stock, $.01 par value- Authorized 1,000,000 shares Issued and outstanding-none - - - - Common Stock, $.01 par value- Authorized 25,000,000 shares at December 31, 1995 Issued and Outstanding-5,517,458 shares at December 31, 1995 and 4,885,852 shares at March 31, 1995 55,175 48,859 Class A Common Stock $.01 par value Authorized - 2,346,000 shares Issued and Outstanding - 1,428,000 shares at December 31, 1995 and 2,040,000 shares at March 31, 1995 14,280 20,400 Additional paid-in capital 36,611,521 36,476,770 Accumulated deficit (22,919,728) (23,241,300) Total stockholders' investment 13,761,248 13,304,729 $16,212,900 $14,730,388
The accompanying notes are an integral part of these consolidated financial statements. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS (continued) CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Nine Months Ended Three Months Ended December 31, 1995 December 31,1994 December 31, 1995 December 31, 1994 Revenues: Products and services $7,008,112 $4,891,535 $2,613,319 $2,252,927 Contracts 2,353,272 1,662,065 897,976 499,959 9,361,384 6,553,600 3,511,295 2,752,886 Costs and expenses: Cost of products and services 2,809,482 2,180,560 997,157 1,123,802 Research and development (including costs related to contracts) 2,491,603 1,677,022 972,566 535,983 Selling, general and administrative 4,133,992 3,359,435 1,484,048 1,233,693 9,435,077 7,217,017 3,453,771 2,893,478 Net income (loss) from operations (73,693) (663,417) 57,524 (140,592) Interest and other income 395,265 327,239 131,539 111,001 Net Income (loss) $321,572 ($336,178) $189,063 ($29,591) Net income (loss) per common share (Note 5): $.05 ($.05) $.03 - Weighted average number of common and dilutive common equivalent shares outstanding 6,988,400 6,474,089 6,993,772 6,474,234
The accompanying notes are an integral part of these consolidated financial statements. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS (continued) CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
Nine Months Ended December 31, 1995 December 31, 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $321,572 ($336,178) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities- Depreciation and amortization 248,370 246,186 Non cash transactions related to Abiomed Limited Partnership - (192,991) Changes in assets and liabilities- Accounts receivable (601,380) (170,286) Inventories (130,790) 260,045 Prepaid expenses and other current assets (153,441) (10,798) Accounts payable 754,564 92,425 Accrued expenses 271,429 (99,673) Net cash provided by (used in) operating activities 710,324 (211,270) CASH FLOWS FROM INVESTING ACTIVITIES: (Purchases) sales of investments, net 1,227,465 376,141 Purchases of property and equipment and improvments (197,512) (48,777) Purchases of limited partner units (Note 7) (770,000) - - Net cash (used in) provided by investing activities 259,953 327,364 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of stock options and stock issued under employee stock purchase plan 134,947 9,703 Net cash provided by financing activities 134,947 9,703 NET INCREASE IN CASH AND EQUIVALENTS, EXCLUDING INVESTMENTS 1,105,224 125,797 CASH AND CASH EQUIVALENTS, EXCLUDING INVEST- MENTS, AT BEGINNING OF PERIOD 614,091 480,058 CASH AND CASH EQUIVALENTS , EXCLUDING INVEST- MENTS, AT END OF PERIOD $1,719,315 $605,855
The accompanying notes are an integral part of these consolidated financial statements. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 1: FINANCIAL STATEMENTS (continued) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Basis of Preparation The unaudited consolidated financial statements of ABIOMED, Inc. (the Company), presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's latest audited financial statements, which are contained in the Company's Form 10-K for the year ended March 31, 1995, which was filed with the Securities and Exchange Commission. In the opinion of management, the accompanying consolidated financial statements include all adjustments (consisting only of normal, recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. The results of operations for the nine months ended December 31, 1995 may not be indicative of the results that may be expected for the full fiscal year. 2. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, ABIOMED Cardiovascular, Inc., ABIOMED R&D Inc., ABIODENT, Inc., Abiomed Research and Development, Inc., ABD Holding Company, Inc., and the accounts of its majority-owned subsidiary Abiomed Limited Partnership (see Note 7). All significant intercompany accounts and transactions have been eliminated in consolidation. 3. Inventories Inventories include raw materials, work-in-process, and finished goods and are priced at the lower of cost (first-in, first-out) or market and consist of the following:
December 31,1995 March 31, 1995 Raw Materials $499,452 $339,686 Work-in-Process 725,217 412,956 Finished Goods 315,401 656,638 TOTAL $1,540,070 $1,409,280
Finished goods and work-in-process inventories consist of direct material, labor and overhead. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 1: FINANCIAL STATEMENTS (continued) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited, continued) 4. Stockholders' Investment On August 9, 1995, the Stockholders of the Company voted to increase the number of authorized shares of Common Stock from 10,000,000 to 25,000,000 shares. Effective August 10, 1995, in accordance with the rights for the Class A Common Stock, 612,000 shares of Class A Common Stock $.01 par value were converted into an equal number of shares of the Company's $.01 par value Common Stock. During the third quarter of fiscal 1996, options to purchase 195,500 shares of Common Stock were granted at exercise prices ranging from $9.75 to $11.00 per share. Options to purchase 29,200 shares were canceled during the quarter. Options to purchase 3,675 shares were exercised in the third quarter at exercise prices ranging from $5.75 to $8.00 per share. . 5. Net Income (Loss) Per Common Share Net income (loss) per common share has been computed by dividing the net income (loss) by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares, such as stock options, have not been included in the per share calculation where the effect of their inclusion would be antidilutive. No common equivalent shares are considered dilutive in periods, such as the three and nine month periods ended December 31, 1994, in which a loss is reported because all such common equivalent shares are antidilutive. 6. Cash and Cash Equivalents The Company classifies any marketable security with a maturity date of 90 days or less at the time of acquisition to be a cash equivalent. Securities, including marketable securities, with original maturities of greater than 90 days are classified as investments. Such investments are classified as long- term investments when their maturities are greater than one year from the balance sheet date. The company reports investments at cost plus accrued interest. 7. Other Long Term Assets Other long term assets represent the Company's investment in limited partner units of the Abiomed Limited Partnership, net of minority interest. Abiomed Limited Partnership (the Partnership) was formed in March 1985 and provided initial funding for the design and development of two of the Company's products, the BVS and SupraCor (the Products). Today, the Partnership is inactive except for certain royalty rights, described below, on the Company's sales of the Products. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 1: FINANCIAL STATEMENTS (continued) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited, continued) 7. Other Long Term Assets (continued) The Partnership consists of a sole general partner, which is the Company's wholly-owned subsidiary, Abiomed Research and Development, Inc.; a special limited partner, which is the Company's wholly-owned subsidiary ABIOMED Cardiovascular, Inc. (Cardiovascular); and one hundred thirty-five limited partner units. As of March 31, 1995 the Company held a 10.9% interest in the Partnership comprised of 1.0% by the general partner and 9.9% by the special limited partner while each of the limited partner units were owned by third party investor limited partners. The limited partner units aggregate to hold an 89.1% interest in the Partnership. In May 1995, the Company made an offer to purchase each of the one hundred thirty-five limited partner units for $10,000 each. Seventy-seven limited partner units were tendered to the Company under this offer for which the company paid $770,000. Combined with the Company's initial 10.9% ownership, the Company now owns 61.7% of the Partnership. The Company's purchase of these limited partner units results in the Company consolidating the limited partnership with the purchase price treated as a long-term asset amortized on straight-line basis over 5 years. In March 1995, the Company satisfied all of its remaining fixed obligations to the Partnership. Commencing April 1, 1995 and ending August 3, 2000, the Company owes a royalty to the Partnership of 5.5% of certain revenues from the Products. Because the Company owns 61.7% of the Partnership, the net royalty expense to the Company is approximately 2.1% of certain revenues from the Products. This royalty formula is subject to certain maximum amounts and to certain additional adjustments in the event that the Company sells the technology. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS NET INCOME (LOSS) Net income and income per share for the three months ended December 31, 1995 were approximately $189,000 and $.03 per share, respectively. These earnings compare to a net loss and loss per share of approximately $30,000 and $0.00 per share, respectively, in the same period of the previous year. Net income and income per share for the nine months ended December 31, 1995 were approximately $322,000 and $.05 per share, respectively. These earnings compare to a loss of approximately $336,000 and $.05 per share in the same period of the previous year. REVENUES In the three months ended December 31, 1995, total revenues were approximately $3,511,000, 27% higher than total revenues of approximately $2,753,000 in the same period of the previous year. Product revenues were approximately $2,613,000, 16% higher than product revenues of approximately $2,253,000 in the same period of the previous year. These results primarily reflect increased domestic unit sales and increased average selling prices of the disposable cardiovascular product to the expanded installed customer base. Revenues from the Company's dental products, though growing, represented less than 10% of total revenues for the nine months ended December 31, 1995. More than 90% of total product and service revenues in the quarter were derived from domestic sources. Revenues from Research and Development (R&D) contracts and grants for this quarter were approximately $898,000, 80% higher than total revenues of approximately $500,000 reported in the same quarter of the previous year. This increase primarily reflects timing of scheduled activities under existing contracts and grants. In the nine months ended December 31, 1995, total revenues were approximately $9,361,000, 43% higher than total revenues of approximately $6,554,000 in the same period of the previous year. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS(continued) REVENUES (continued) Product revenues for the nine month period were approximately $7,008,000 compared with $4,892,000 for the same period of the previous year, an increase of 43%. This growth primarily reflects increased unit sales of the disposable cardiovascular product and increased unit sales to new customers. Revenues from dental products continued to grow, however, represented less than 10% of total revenue for the nine month period. Revenues from Research and Development contracts and grants for the nine months ended December 31, 1995 were approximately $2,353,000, 41% higher than in the same period of the prior year. The increase primarily reflects the timing of scheduled activities under existing contracts and grants as well as contributions from new contracts and grants. In aggregate, as of December 31, 1995, the Company's backlog of research and development contracts and grants totaled approximately $6,051,000 including approximately $758,000 from the National Heart, Lung and Blood Institute (NHLBI) relating to the current phase of funding for the Company's total artificial heart (TAH) research and development. Approximately 75% of the Company's contract revenues and related expenses in the current fiscal year have been derived from the TAH contract. The levels of revenue and expense under this specific contract have been maintained at higher than linear rates during this 9-month period. The Company expects that increased efforts and contributions from the Company's ten other active contracts and grants will offset most or all of any compensating reduction in the rate of spending under the TAH contract for the next two quarters, although there can be no assurance that this will be the case. A continuation phase of the TAH contract is scheduled to be awarded at the end of September 1996 be the NHLBI. If this continuation phase is awarded to the Company, the contract specifies that this continuation phase would total approximately $8,600,000. The Company believes that only two of the three scientific teams presently receiving government funding will qualify for funding of this continuation phase. To date, the Company's government contracts and grants, including collection of amounts due thereunder, have not been noticeably affected by the federal budget stalemate and the Company does not anticipate that these contracts and grants will be affected, although there can be no assurance that this will be the case. COSTS AND EXPENSES Total costs and expenses for the three months ended December 31, 1995 were approximately $3,454,000, 19% higher than total costs and expenses of approximately $2,893,000 in the same fiscal quarter of the previous year. The majority of this increase reflects expenses incurred to support higher revenues. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS(continued) COSTS AND EXPENSES (continued) Cost of products sold as a percentage of product sales (38%) decreased from the same quarter of the previous year (50%) while decreasing in total cost by approximately $127,000. These decreased costs primarily reflect higher production efficiencies. Total research and development costs increased during the third fiscal quarter of 1996 to approximately $973,000, an 82% increase over research and development costs of approximately $536,000 incurred during the same fiscal period of the previous year. The increase primarily reflects the timing of scheduled expenditures under contracts and grants. Selling, general and administrative expenses for the three months ended December 31, 1995 increased to $1,484,000, 20% higher than selling, general and administrative expenses in the same fiscal quarter of the previous year. This increase primarily reflects increased sales and marketing expenses, particularly increased personnel and sales commissions, related to the increase in product revenues. Total costs and expenses for the nine month period ended December 31, 1995 increased to approximately $9,435,000, 31% higher than total costs and expenses of approximately $7,217,000 for the first nine months of last year. The increase is primarily attributable to higher revenue levels attained during the first nine months of fiscal 1996. Cost of products sold as a percentage of products sales (40%) for the nine months ended December 31, 1995 decreased from the same nine month period ended December 31, 1994 (45%) while increasing in total cost by approximately $629,000. These increased costs primarily reflect higher product revenues. Total research and development costs increased to approximately $2,492,000 for the nine months ended December 31, 1995. This represents a 49% increase over the $1,677,000 reported for the same period in the previous fiscal year. The increase primarily reflects the timing of scheduled expenditures under contracts and grants. Selling, general and administrative expenses for the nine months ended December 31, 1995 increased to approximately $4,134,000, 23% higher than selling, general and administrative expenses in nine month period ended December 31, 1994. This increase primarily reflects increased sales and marketing expenses, particularly increased personnel and sales commissions related to the increase in product and service revenues. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS(continued) INTEREST AND OTHER Interest and other income increased to approximately $132,000 in the third quarter of 1996 compared with approximately $111,000 in the corresponding quarter of the prior year primarily due to higher levels of cash and investments. For the nine months ended December 31, 1995, interest and other income was approximately $395,000 compared to $327,000 for the nine months ended December 31, 1994. This increase was primarily due to higher levels of cash and investments. LIQUIDITY AND CAPITAL RESOURCES As of December 31, 1995, the Company's balance sheet included $10,902,000 in cash and investments, a decrease of approximately $123,000 from March 31, 1995. This decrease reflects $770,000 in cash used to purchase limited partner units from third party limited partner investors in Abiomed Limited Partnership offset partially by approximately $710,000 in cash generated from operations and other activities. The December 31, 1995 balance includes approximately $1,719,000 in cash, $7,658,000 in short-term investments and $1,525,000 in investments with various maturities, the latest of which is September 1998. The Company also has a $3,000,000 line of credit from a bank which expires on December 1, 1996, and which was entirely available at December 31, 1995. Net cash provided by operating activities included net income, and depreciation and amortization expenses of approximately $248,000, an increase in accounts payable of $755,000 and an increase in accrued expenses of approximately $271,000. These sources of cash were partially offset by an increase in accounts receivable of approximately $601,000, an increase in inventories of approximately $131,000 and an increase of prepaid expenses and other current assets of approximately $153,000. The increase in accounts receivable is attributable to increased revenues and longer collection periods for certain accounts. The increase in accounts payable was primarily attributable to increased purchases of direct materials for manufacturing and research and development activities. Net cash used in investing activities included $770,000 used to purchase limited partner units of the Partnership and approximately $198,000 of purchases and improvements of property and equipment which were partially offset by approximately $1,227,000 of net purchases and maturities of investments. As set forth in Note 7 of the financial statements included in this report, during the second fiscal quarter of the current fiscal year the Company purchased units of the investor limited partner's interests in the Partnership at a purchase price of $10,000 per unit. As of December 31, 1995 the Company had acquired and paid for seventy-seven (77) units of the Partnership. ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) PRODUCT DEVELOPMENT UPDATE For the past year, the Company has been involved in a pilot study aimed at demonstrating the feasibility of using the SupraCor for resuscitation of patients who suffer from cardiac arrest and do not respond to current life support techniques. The SupraCor Catheter (the SupraCor), is an advanced intra-aortic balloon-based catheter designed to operate in the patient's ascending aorta. This pilot study has been conducted at one medical center in the United States at which sixteen patients have been enrolled into the pilot study. The intent of the pilot study has been to determine the feasibility for insertion and placement of the device on twenty patients (up to a maximum of thirty) and to evaluate its ability to improve resuscitation of patients unresponsive to existing therapies and who face certain death. This first phase study did not encompass post-resuscitation support of these patients, which though believed to be ultimately necessary for FDA approval of the device, was not part of this first phase. In January 1996, upon completion of the first year of the study, which consisted of sixteen patients, and before additional trials, the medical center's Institutional Review Board asked whether further enrollment of the remaining patients under the existing protocol was necessary to complete the study. The Company has concluded that enrollment of the remaining four patients would provide only limited additional meaningful information. The Company has further concluded that there is need for procedural changes, and possibly device refinements, which should be made prior to proceeding with any further studies. The Company and its medical collaborators are currently analyzing the data from the study. Pending analysis of this data and a review of this product from an overall business perspective, including marketing, regulatory and product improvement considerations, the Company has suspended all clinical activity with its SupraCor catheter. HEALTH CARE REFORM Private and government proposals for significant health care reform are expected to continue to affect healthcare expenditures in the United States as well as internationally where the company sells or plans to sell its products. The Company cannot assess at this time the potential impact that healthcare trends may have on future results because of uncertainties surrounding any unforseeable changes. *** ABIOMED, INC. AND SUBSIDIARIES PART II. OTHER INFORMATION Item 1. Legal Proceedings None Item 2. Changes in Securities None Item 3. Defaults upon Senior Securities None Item 4. Submission of Matters to a Vote of Security Holders None Item 5. Other Information None Item 6. Exhibits and Reports on Form 8-K a) Exhibits None b) Reports on Form 8-K None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ABIOMED, Inc. Date: February 6, 1996 /s/ David M. Lederman David M. Lederman CEO and President Date: February 6, 1996 /s/ John F. Thero John F. Thero Vice President Finance and Administration; and Treasurer Chief Financial Officer Principal Accounting Officer 14 EX-27 2
5 This schedule contains summary financial information extracted from the Consolidated Income Statement, Consolidated Balance Sheet and Consolidated Statement of Cash Flows and is qualified in its entirety by reference to Form 10-Q for the period ended December 31, 1995. 9-MOS MAR-31-1996 APR-10-1995 DEC-31-1995 1719315 7657505 2479758 102644 1540070 13501275 2788766 2265297 16212900 2451652 0 69455 0 0 13691793 16212900 9361384 9361384 5301085 5301085 0 0 (395265) 321572 0 321572 0 0 0 321572 .046 .046
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