-----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, KjoSaCPwC/9ALSr6g7eYfxXRs6cMarTO25jSE7Dz8FnwbsK9G2FKapeSOSdjHgUV OyAtUS4STvm/UXkKwgE6Bg== /in/edgar/work/20000727/0000912057-00-033350/0000912057-00-033350.txt : 20000921 0000912057-00-033350.hdr.sgml : 20000921 ACCESSION NUMBER: 0000912057-00-033350 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ABIOMED INC CENTRAL INDEX KEY: 0000815094 STANDARD INDUSTRIAL CLASSIFICATION: [3841 ] IRS NUMBER: 042743260 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09585 FILM NUMBER: 679761 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 a10-q.txt 10-Q 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 June 30, 2000 ------------- 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 0-20584 ------- ABIOMED, INC. ------------- (Exact name of registrant as specified in its charter) DELAWARE 04-2743260 -------- ---------- (State of incorporation) (IRS Employer No.) 22 CHERRY HILL DRIVE DANVERS, MASSACHUSETTS 01923 ---------------------------- (Address of principal executive offices, including zip code) (978) 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 July 24, 2000, there were 10,247,947 shares outstanding of the registrant's Common Stock, $.01 par value. ABIOMED, INC. AND SUBSIDIARIES TABLE OF CONTENTS Page No. Part I - Financial Information: Item 1. Condensed Consolidated Financial Statements Consolidated Balance Sheets June 30, 2000 and March 31, 2000 3-4 Consolidated Statements of Operations Three Months Ended June 30, 2000 and June 30, 1999 5 Consolidated Statements of Cash Flows Three Months Ended June 30, 2000 and June 30, 1999 6 Notes to Consolidated Financial Statements 7-10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11-14 Item 3. Quantitative and Qualitative Disclosure About Market Risk 15 Part II - Other Information 16 Signatures 17 2 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS --------------------------- (in thousands) ASSETS ------
June 30, 2000 March 31, 2000 (unaudited) (audited) Current Assets: Cash and cash equivalents (Note 7) $ 91,910 $ 101,917 Short-term marketable securities (Note 8) 11,066 4,467 Accounts receivable, net of allowance for doubtful accounts of $184 at June 30, 2000 and March 31, 2000 (Note 3) 6,494 6,691 Inventories (Note 4) 3,749 3,546 Prepaid expenses and other current assets 818 526 ----------- ----------- Total current assets 114,037 117,147 ----------- ----------- Property and Equipment, at cost: Machinery and equipment 6,726 6,427 Furniture and fixtures 634 622 Leasehold improvements 2,642 2,277 ----------- ----------- 10,002 9,326 Less: Accumulated depreciation and amortization 5,822 5,375 ----------- ----------- 4,180 3,951 ----------- ----------- Other Assets, net (Note 9) 652 690 ----------- ----------- $ 118,869 $ 121,788 ----------- ----------- ----------- -----------
The accompanying notes are an integral part of these consolidated financial statements. 3 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS (continued) CONSOLIDATED BALANCE SHEETS (CONTINUED) --------------------------------------- (in thousands, except share data) LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------
June 30, 2000 March 31, 2000 (unaudited) (audited) Current Liabilities: Accounts payable $ 1,396 $ 1,553 Accrued expenses 5,515 6,360 Current portion of long-term liabilities 237 236 ----------- ------------ Total current liabilities 7,148 8,149 ----------- ------------ Long-Term Liabilities 655 715 Stockholders' Equity (Note 5): 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 Issued and outstanding- 10,239,497 shares at June 30, 2000 and 10,227,847 shares at March 31, 2000 102 102 Additional paid-in capital 154,638 154,511 Accumulated deficit (43,674) (41,689) ----------- ------------ Total stockholders' equity 111,066 112,924 ----------- ------------ $ 118,869 $ 121,788 ----------- ------------ ----------- ------------
The accompanying notes are an integral part of these consolidated financial statements. 4 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS (continued) CONSOLIDATED STATEMENTS OF OPERATIONS ------------------------------------- (in thousands, except per share and share data) (unaudited)
Three Months Ended ------------------ June 30, 2000 June 30, 1999 ----------------- ------------------ Revenues: Products $ 5,504 $ 4,021 Contracts 355 2,331 ----------------- ------------------ 5,859 6,352 ----------------- ------------------ Costs and expenses: Cost of product revenues 1,935 1,357 Research and development 4,491 3,392 Selling, general and administrative 2,977 2,498 ----------------- ------------------ 9,403 7,247 ----------------- ------------------ Loss from operations (3,544) (895) Interest and other income 1,559 157 ----------------- ------------------ Net loss $ (1,985) $ (738) ----------------- ------------------ ----------------- ------------------ Basic and diluted net loss per share (Note 6): $ (0.19) $ (0.09) Weighted average shares outstanding (Note 6): 10,231,947 8,651,952
The accompanying notes are an integral part of these consolidated financial statements. 5 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS (continued) CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) (unaudited)
Three Months Ended ------------------ June 30, 2000 June 30, 1999 ------------------- ------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (1,985) $ (738) Adjustments to reconcile net loss to net cash used in operating activities- Depreciation and amortization 504 666 Changes in assets and liabilities- Accounts receivable, net 197 (1,344) Inventories (203) (169) Prepaid expenses and other assets (311) (257) Accounts payable (157) (65) Accrued expenses (845) (350) Long-term liabilities - (15) ------------------- ------------------- Net cash used in operating activities (2,800) (2,272) ------------------- ------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from the sale of short-term marketable securities 2,350 981 Purchases of short-term marketable securities (8,949) (2,049) Purchases of property and equipment (676) (247) ------------------- ------------------- Net cash used by investing activities (7,275) (1,315) ------------------- ------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of stock options 68 18 ------------------- ------------------- Net cash provided by financing activities 68 18 ------------------- ------------------- NET DECREASE IN CASH AND CASH EQUIVALENTS (10,007) (3,569) CASH AND CASH EQUIVALENTS, EXCLUDING MARKETABLE SECURITIES, AT BEGINNING OF PERIOD 101,917 9,279 ------------------- ------------------- CASH AND CASH EQUIVALENTS, EXCLUDING MARKETABLE SECURITIES, AT END OF PERIOD $ 91,910 $ 5,710 ------------------- ------------------- ------------------- -------------------
The accompanying notes are an integral part of these consolidated financial statements. 6 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 our latest audited financial statements. These audited statements are contained in our Form 10-K for the year ended March 31, 2000 and have been filed with the Securities and Exchange Commission. In our opinion, the accompanying consolidated financial statements include all adjustments (consisting only of normal, recurring adjustments) necessary to summarize fairly the financial position and results of operations as of June 30, 2000 and for the three months then ended. The results of operations for the three months ended June 30, 2000 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, and the accounts of its majority-owned subsidiary, Abiomed Limited Partnership. All significant intercompany accounts and transactions have been eliminated in consolidation. 3. ACCOUNTS RECEIVABLE Accounts receivable include amounts due from customers, excluding long-term amounts due from customers under sales-type leases (see Note 9), net of allowance for doubtful accounts. Accounts receivable also include amounts due from government and other third party sources related to the Company's research and development contracts and grants. These research and development contracts and grants generally provide for payment on a cost-plus-fixed-fee basis. The Company recognizes revenues under its government contracts and grants as work is performed, provided that the government has appropriated sufficient funds for the work. The Company retains rights to all technological discoveries and products resulting from these efforts. 7 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 1: FINANCIAL STATEMENTS (continued) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited, continued) 4. INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or market and consist of the following (in thousands):
June 30, March 31, ------------------- ------------------ 2000 2000 Raw materials $ 1,696 $ 1,490 Work-in-process 678 713 Finished goods 1,375 1,343 ------------- ------------- $ 3,749 $ 3,546 ------------- ------------- ------------- -------------
Finished goods and work-in-process inventories consist of direct material, labor and overhead. 5. STOCKHOLDERS' EQUITY During the three months ended June 30, 2000, options to purchase 12,000 shares of Common Stock were granted at prices ranging from $33.625 to $38.875. During that same period options to purchase 36,375 shares were canceled and options to purchase 11,650 shares of Common Stock were exercised at prices ranging from $8.00 to $11.50 per share. 6. NET LOSS PER COMMON SHARE Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of dilutive common shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of common stock options based on the treasury stock method. No common stock options are considered dilutive in periods in which a loss is reported, such as the three months ended June 30, 2000 and June 30, 1999, because all such common equivalent shares would be antidilutive. The number of equivalent shares that otherwise would have been dilutive for the three months ended June 30, 2000 and June 30, 1999, were 843,071 and 266,451, respectively. 8 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 1: FINANCIAL STATEMENTS (continued) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited, continued) 7. CASH AND CASH EQUIVALENTS The Company classifies any marketable security with a maturity date of 90 days or less at the time of purchase as a cash equivalent. 8. MARKETABLE SECURITIES The Company classifies any security with a maturity date of greater than 90 days at the time of purchase as marketable securities and classifies marketable securities with a maturity of greater than one year from the balance sheet date as long-term investments. Under Statement of Financial Accounting Standards (SFAS) No. 115, ACCOUNTING FOR CERTAIN INVESTMENTS IN DEBT AND EQUITY SECURITIES, securities that the Company has the positive intent and ability to hold to maturity are reported at amortized cost and classified as held-to-maturity securities. At June 30, 2000, the amortized cost of these securities approximated market value. 9. OTHER ASSETS Other assets include approximately $23,000 in unamortized purchase cost of the Company's majority interest of the Abiomed Limited Partnership. The interest in the Abiomed Limited Partnership is being amortized over its useful life ending August 3, 2000. Abiomed Limited Partnership (the Partnership) was formed in March 1985 and provided initial funding for the design and development of certain of our products. Through August 3, 2000, a royalty is owed to the Partnership equal to 5.5% of certain revenues from these products. Because the Company owns 61.7% of the Partnership, the net royalty expense to the Company is approximately 2.1% of these product revenues. The Partnership is inactive except with respect to receiving and distributing proceeds from these royalty rights. Also included in other assets are long-term accounts receivable related to sales-type leases. The terms of these non-cancelable leases are one to three years. As of June 30, 2000, the long-term amount due from these sales-type leases approximated $235,000. As of March 31, 2000, the long-term amount due from these sales-type leases approximated $273,000. 9 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 1: FINANCIAL STATEMENTS (continued) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited, continued) 9. OTHER ASSETS (CONTINUED) Other assets also include the unamortized cost of a number of awarded and pending patents. As of June 30, 2000, the unamortized cost of these patents approximated $384,000. As of March 31, 2000, the unamortized cost of these patents approximated $356,000. 10. COMPREHENSIVE INCOME SFAS No. 130, REPORTING COMPREHENSIVE INCOME, requires disclosure of all components of comprehensive income and loss on an annual and interim basis. Comprehensive income and loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. There were no components of comprehensive income or loss that require disclosure for the three months ending June 30, 2000 or June 30, 1999. 11. SEGMENT AND ENTERPRISE WIDE DISCLOSURES SFAS No. 131, DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION, requires certain financial information and supplementary information to be disclosed on an annual and interim basis for each reportable segment of an enterprise. The Company believes that it operates in one business segment: the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. 12.RECLASSIFICATION OF PRIOR YEAR AMOUNTS Certain prior year financial statement information has been reclassified to be consistent with the current year presentation. 10 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 THREE MONTHS ENDED JUNE 30, 2000 PRODUCT REVENUES Product revenues increased by $1.5 million, or 37%, to $5.5 million in the three months ended June 30, 2000 from $4.0 million in the three months ended June 30, 1999. The increase in product revenues is attributable to increased shipments of BVS disposable blood pumps and consoles and increased average selling prices of BVS disposable blood pumps. Domestic sales accounted for 98% and 97% of total product revenue during the three months ended June 30, 2000 and 1999, respectively. CONTRACT REVENUES Contract revenues were $0.4 million in the three months ended June 30, 2000, lower by 85% from revenues of $2.3 million in the three months ended June 30, 1999. The lower contract revenue is due to recognition of $1.8 million in AbioCor Implantable Replacement Heart (AbioCor(TM)) contract revenue during the corresponding quarter in the previous year. No contract revenue for AbioCor is included in contract revenues in the quarter ended June 30, 2000 and there are no remaining funds awarded under this contract. We account for contract revenues under our government contracts and grants as work is performed, provided that the government has appropriated sufficient funds for the work. As of June 30, 2000, our total backlog of research and development contracts and grants was $1.2 million. All of these contracts and grants contain provisions that make them terminable at the convenience of the government. ABIOMED retains rights to commercialize all technological discoveries and products resulting from these efforts. COST OF PRODUCT REVENUES Cost of product revenues as a percentage of product revenues increased to 35% in the three months ended June 30, 2000 from 34% in the three months ended June 30, 1999. The 1% increase in the three months ended June 30, 2000, is primarily due to a reduction in manufacturing overhead absorbed into inventory as a result of the timing of our production schedules and a decrease in the proportion of higher margin BVS blood pumps sold relative to lower margin BVS 11 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) COST OF PRODUCT REVENUES (CONTINUED) console sales, partially offset by an increase in the average selling price of BVS blood pumps. RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses increased by $1.1 million, or 32% to $4.5 million in the three months ended June 30, 2000, from $3.4 million in the three months ended June 30, 1999. Research and development expenses were 77% of total revenues for the quarter ended June 30, 2000 and 53% of total revenues for the quarter ended June 30, 1999. The increase in expenditures during the quarter just ended was due to increased spending for the AbioCor. Research and development expenses during the three months ended June 30, 2000 included $3.6 million of expenses incurred in connection with development activities for the AbioCor, compared to $2.3 million for the same period of the prior year. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses increased by $0.5 million, or 19%, to $3.0 million in the three months ended June 30, 2000, from $2.5 million in the three months ended June 30, 1999. Expenditures increased to 51% of total revenues from 39% of total revenues in the same period a year earlier. The increase was primarily attributable to increased selling and marketing expenditures as a result of our implementing new programs designed to improve sales of our disposable blood pumps, increased direct sales and support activities within Europe, increased recruiting expenses and increased occupancy charges associated with occupying our new facility in Danvers, Massachusetts while continuing to lease manufacturing space in our older facility. INTEREST AND OTHER INCOME Interest and other income consists primarily of interest earned on our investment balances, net of interest and other expenses. Interest and other income increased by $1.4 million to $1.6 million for the three months ended June 30, 2000 from $0.2 million for the three months ended June 30, 1999. The increase was due to higher average funds available for investment during the quarter just ended. 12 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) NET LOSS Net loss for the three months ended June 30, 2000 was approximately $2.0 million, or $0.19 per share. This compares to a net loss of approximately $0.7 million, or $0.09 per share, in the same period of the previous year. The losses for both periods are primarily attributable to the Company's development and pre-clinical testing costs associated with the AbioCor. LIQUIDITY AND CAPITAL RESOURCES We have supported our operations primarily with net revenues from sales of our BVS product line, government contracts and proceeds from our equity financings. As of June 30, 2000, our cash, cash equivalents and marketable securities totaled $103.0 million. We also have a $3 million line of credit from a bank that expires on October 13, 2000, which bears interest at the bank's prime rate (9.5% at June 30, 2000). During the three months ended June 30, 2000, operating activities used $2.8 million of cash. Net cash used by operating activities during this period reflected a net loss of $2.0 million, including depreciation and amortization expense of $0.5 million, and increases in inventory and prepaid expenses and other assets of $0.2 million and $0.3 million, respectively. Decreases in accounts payable and accrued expenses during the period further reduced cash by $1.0 million. These uses of cash were partially offset by a decrease in accounts receivable of $0.2 million. The increase in inventory is primarily attributable to purchases of inventory related to the Company's new BVS 5000t, a backup unit to the current BVS 5000, designed to allow transport of BVS supported patients between medical centers for specialized care. The decrease in accounts payable and accrued expenses reflects the timing of payments. During the three months ended June 30, 2000, investing activities used $7.3 million of cash. Approximately $6.6 million in cash was used for the acquisition of short-term marketable securities, net of sales of similar securities. We also expended cash for capital equipment and leasehold improvements of $0.7 million during the three months ended June 30, 2000. Financing activities generated $0.1 million of cash during the quarter ended June 30, 2000 as a result of stock options exercised during the period. 13 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) LIQUIDITY AND CAPITAL RESOURCES (CONTINUED) Income taxes incurred during the three months ended June 30, 2000 were not material, and we continue to have significant net tax operating loss and tax credit carryforwards. We believe that our existing resources and our revenue from product sales will be sufficient to fund our planned operations, including the planned increases in our internally funded AbioCor and new BVS development and product extension efforts, for the foreseeable future. However, we may require significant additional funds in order to complete the development, conduct clinical trials, and achieve regulatory approvals of the AbioCor and other products under development over the next several years. We may also need additional funds for possible future strategic acquisitions of businesses, products or technologies complementary to our business. If additional funds are required, we may raise such funds from time to time through public or private sales of equity or from borrowings. RISK FACTORS WHICH MAY AFFECT FUTURE RESULTS This document contains forward looking statements, including statements regarding new products under development and adequacy of existing resources. The Company's actual results, including our AbioCor development, BVS enhancements and adequacy of resources may differ materially based on a number of factors, both known and unknown, including: uncertainty of product development, clinical trials and commercial acceptance; complex manufacturing; high quality requirements; the need to demonstrate required reliability of products under development; dependence on key personnel; risks associated with a growing number of employees; difficulties in recruiting required human resources on schedule; competition and technological change, government regulations including the FDA and other regulatory agencies; risks associated with international expansion; reliance on government contracts; dependence on limited sources of supply; future capital needs and uncertainty of additional funding; dependence on third-party reimbursement; potential inadequacy of product liability insurance; dependence on patents and proprietary rights; and other risks detailed in our Form 10-K for the year ended March 31, 2000 which was filed with the Securities and Exchange Commission. Investors are cautioned that all such statements involve risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 14 ABIOMED, INC. AND SUBSIDIARIES PART 1. FINANCIAL INFORMATION (continued) ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK The Company does not use derivative financial instruments for speculative or trading purposes. However, it is exposed to market risk related to changes in interest rates. The Company maintains an investment portfolio consisting mainly of federal agency obligations, state and municipal bonds, and U.S. Treasury notes with maturities of one year or less. These held-to-maturity securities are subject to interest rate risk and will fall in value if market interest rates increase. If market interest rates were to increase immediately and uniformly by 10 percent from levels at June 30, 2000, the fair market value of the portfolio would decline by an immaterial amount. The Company has the ability to hold the majority of its fixed income investments until maturity, and therefore the Company would not expect its operating results or cash flows to be affected to any significant degree by the effect of a sudden change in market interest rates on its securities portfolio. 15 ABIOMED, INC. AND SUBSIDIARIES PART II. OTHER INFORMATION Item 1. LEGAL PROCEEDINGS No material change. 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 Exhibit 27 - Financial Data Schedule. b) REPORTS ON FORM 8-K None 16 ABIOMED, INC. AND SUBSIDIARIES PART II. OTHER INFORMATION - -------------------------------------------------------------------------------- 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: July 27, 2000 /s/ David M. Lederman ---------------------- David M. Lederman CEO and President Date: July 27, 2000 /s/ John F. Thero ------------------ John F. Thero Senior Vice President Finance and Treasurer Chief Financial Officer Principal Accounting Officer 17 EX-27.A 2 ex-27_a.txt EXHIBIT 27.A
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S CONSOLIDATED STATEMENT OF OPERATIONS, CONSOLIDATED BALANCE SHEET, AND CONSOLIDATED STATEMENT OF CASH FLOWS. 1,000 3-MOS MAR-31-2001 APR-01-2000 JUN-30-2000 91,910 11,066 6,678 184 3,749 818 10,002 5,822 118,869 7,148 0 0 0 102 110,964 118,869 5,859 5,859 6,426 9,403 0 0 (1,559) (1,985) 0 (1,985) 0 0 0 (1,985) (0.19) (0.19)
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