Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

 

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): 2/27/2012

 

 

LeMaitre Vascular, Inc.

(Exact name of registrant as specified in its charter)

 

 

Commission File Number: 001-33092

 

Delaware   04-2825458

(State or other jurisdiction

of incorporation)

 

(IRS Employer

Identification No.)

63 Second Avenue

Burlington, MA 01803

(Address of principal executive offices, including zip code)

781-221-2266

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Information to be included in the report

Item 2.02. Results of Operations and Financial Condition

On February 27, 2012, LeMaitre Vascular, Inc. issued a press release regarding its financial and operational results for the fourth quarter and fiscal year ended December 31, 2011. A copy of the press release is furnished as Exhibit 99.1 to this report.

The information in this report, including the Exhibit attached hereto, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

The following exhibit is furnished as part of this report, where indicated:

(d) Exhibits.

 

Exhibit No.

  

Description

99.1    Press release issued by LeMaitre Vascular, Inc. on February 27, 2012, announcing its financial and operational results for the fourth quarter and fiscal year ended December 31, 2011, furnished herewith.


Signature(s)

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 hereunto duly authorized.

 

        LeMaitre Vascular, Inc.

Date: February 27, 2012

  By:   Joseph P. Pellegrino, Jr.
   

/s/ JOSEPH P. PELLEGRINO, JR.

   

Joseph P. Pellegrino, Jr.

Chief Financial Officer


Exhibit Index

 

Exhibit No.

  

Description

EX-99.1    Press Release
Press Release

Exhibit 99.1

 

LOGO

For information contact:

J.J. Pellegrino

Chief Financial Officer

LeMaitre Vascular Inc.

781- 425-1691

jpellegrino@lemaitre.com

LeMaitre Vascular Q4 2011 Sales $13.4mm (+5% organic), Op. Income $0.8mm

BURLINGTON, MA, February 27, 2012 — LeMaitre Vascular, Inc. (NASDAQ: LMAT), a provider of peripheral vascular devices and implants, today reported Q4 2011 and full-year 2011 financial results. The Company posted sales of $13.4mm and operating income of $0.8mm in Q4 2011, and full-year 2011 sales of $57.7mm and operating income of $3.7mm in the full-year 2011. The Company also increased its cash dividend to $0.025 per share and provided Q1 2012 and full-year 2012 updated guidance.

Q4 2011 sales increased 5% organically vs. Q4 2010. Sales in the Americas grew 4% organically, while International increased 7%. Q4 2011 reported sales declined 7% due to the Company’s mid-2011 stent graft exit. Full-year 2011 sales increased 3% on a reported and organic basis, hampered by the stent graft exit.

Gross margin of 71.0% in Q4 2011, versus 71.7% in the prior year period. For the full-year 2011 the Company reported a gross margin of 69.7% vs. 74.4% in 2010. Gross margin declines in both periods were largely due to manufacturing inefficiencies, including the AlboGraft factory transition. Sequentially, gross margin improved 2.4% from Q2 2011 to Q4 2011, largely due to the Company’s recent stent graft exit.

Q4 2011 operating income was $0.8mm, vs. an operating loss of $1.3mm in Q4 2010. Excluding special items in both periods, operating income was $0.9mm in Q4 2011 and Q4 2010, as the absence of stent graft sales in Q4 2011 was offset by lower operating expenses. Full-year 2011 operating income was $3.7mm vs. $4.0mm in 2010.

Net income in Q4 2011 was $0.3mm or $0.02 per diluted share, vs. $2.0mm or $0.12 per diluted share in Q4 2010. Full-year 2011 net income was $2.1mm or $0.13 per diluted share, vs. $6.0mm or $0.37 per diluted share in 2010. Both comparisons reflect a one-time non-cash tax benefit in Q4 2010 of $3.2mm.

George W. LeMaitre, Chairman and CEO said, “International sales were up 7% organically in Q4, reflecting a more focused vascular sales offering, the absence of a stent-graft drag, and direct sales in Spain and Denmark. Looking ahead, our significantly-expanded worldwide sales force and our two recently-launched products, the Over-the-Wire LeMaitre Valvulotome and The UnBalloon, should bolster sales growth. In 2012 these two products are selling at an annualized run-rate of about $500,000. Also, the two 2011 factory closures should enable gross margin expansion going forward.”


The Company ended Q4 2011 with 78 sales representatives, up from 67 at the end of Q4 2010.

Q4 2011 operating expenses were $8.7mm, a 25% decrease from $11.6mm in Q4 2010. Excluding special items in both periods, operating expenses in Q4 2011 were $8.6mm, a 9% decrease from Q4 2010. The improvement was driven by reduced selling expenses and the absence of stent graft clinical trials. Full-year operating expenses were $36.5mm in 2011, a 3% decrease from 2010. Excluding special items in both periods, 2011 operating expenses were $35.0mm, a 1% decrease from 2010.

Cash and marketable securities were $20.1mm at December 31, 2011, a decrease of $3.0mm during the quarter. The decrease was driven by $0.7mm of share repurchases, $0.6mm of Italian closing costs, $0.5mm for the Spanish/Danish transitions and the LifeSpan acquisition, $0.5mm of factory build-out, and $0.3mm of dividends.

Quarterly Dividend

The Company’s Board of Directors approved the payment of a quarterly cash dividend, and a 25% increase in the dividend rate to $0.025 per share of common stock. The dividend is payable on April 3, 2012 to shareholders of record on March 20, 2012. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the final determination of the Company’s Board of Directors.

Business Outlook

The Company expects Q1 2012 sales of $13.8mm (+8% organic versus Q1 2011), and reported operating income of $0.8mm. The Company also expects 2012 full-year sales of $57.5mm (+9% organic vs. 2011), and reported operating income of $5.0mm. Changes in foreign currency exchange rates since the Company’s previous guidance lowered full-year 2012 sales guidance by approximately $725,000. The Company’s previous full-year 2012 organic sales guidance was +8%.

The Company’s Q1 2012 and full-year 2012 guidance includes the effects of its exit from stent grafts, which accounted for $4.0mm of sales ($2.1mm of gross profit) in 2011.

Except as otherwise stated, all guidance amounts exclude the effects of future acquisitions, foreign exchange rate changes, distributor terminations and factory consolidations.

 

Page 2


Conference Call Reminder

Management will conduct a conference call at 5:00 p.m. EDT today to review the Company’s financial results and discuss its business outlook for the remainder of the year. The conference call will be broadcast live over the Internet. Individuals who are interested in listening to the webcast should log on to the Company’s website at www.lemaitre.com/investor. The conference call may also be accessed by dialing 800-706-7749 (+1 617-614-3474 for international callers), using pass-code 95815151. For individuals unable to join the live conference call, a replay will be available on the Company’s website.

About LeMaitre Vascular

LeMaitre Vascular is a provider of devices for the treatment of peripheral vascular disease, a condition that affects more than 20 million people worldwide. The Company develops, manufactures and markets disposable and implantable vascular devices to address the needs of its core customer, the vascular surgeon.

LeMaitre and the LeMaitre Vascular logo are registered trademarks of LeMaitre Vascular, Inc. This press release contains other trademarks and trade names of the Company.

For more information about the Company, please visit http://www.lemaitre.com.

Use of Non-GAAP Financial Measures

LeMaitre Vascular management believes that in order to better understand the Company’s short-term and long-term financial trends, investors may wish to consider certain non-GAAP financial measures as a supplement to financial performance measures prepared in accordance with GAAP. These non-GAAP measures result from facts and circumstances that vary in frequency and/or impact on continuing operations. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP. In addition to the description provided below, reconciliation of GAAP to non-GAAP results is provided in the financial statement tables included in this press release.

In this press release, the Company has reported non-GAAP financial measures, adjusted operating income and operating expenses, which exclude restructuring charges associated with the consolidation of the dacron and ePTFE graft manufacturing facilities in Burlington, the gain related to the termination of the Endologix distribution relationship, and certain charges which consisted of European severance payments, inventory write-offs related to the Endofit stent graft divestiture, termination charges associated with distributor buyouts in Spain and Denmark, and impairment charges associated with certain intangible assets.

In addition, this press release includes sales growth after adjusting for foreign exchange, business development transactions, and other events. The Company refers to this as “organic” sales growth, and it differs from the manner in which the Company has calculated the “organic” sales

 

Page 3


growth in previous quarters in that previously divestitures were adjusted from the current year reported sales and are now adjusted from the prior year reported sales. The Company analyzes net sales on a constant currency basis net of acquisitions and other non-recurring events to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on net sales, and acquisitions, product discontinuations, and other strategic transactions are episodic in nature and highly variable in sales impact, the Company believes that evaluating growth in sales on a constant currency basis net of such transactions provides an additional and meaningful assessment of sales to both management and the Company’s investors. During Q4 2010, the Company acquired its LifeSpan Vascular Graft business and discontinued its Italian OEM manufacturing operations, and in Q3 2011, the Company completed its divestiture of the TAArget and UniFit product lines and ceased distributing the Endologix Powerlink stent graft.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this press release regarding the Company’s business that are not historical facts may be “forward-looking statements” that involve risks and uncertainties. Specifically, statements regarding the financial and operational guidance, future sales growth, commercial success of the launch of the Over-the-Wire LeMaitre Valvulotome or The UnBalloon or other products, manufacturing consolidations, effectiveness of the expanded sales force, acceptance of the product portfolio mix, and the addition of direct-sales territories are forward-looking, involving risks and uncertainties. The Company’s current quarterly financial results, as discussed in this release, are preliminary and unaudited, and subject to adjustment. Forward-looking statements are based on management’s current, preliminary expectations and are subject to risks and uncertainties that could cause actual results to differ from the results predicted. These risks and uncertainties include, but are not limited to, the risk that the Company experiences significant fluctuations in its quarterly and annual results; the risk that assumptions about the market for the Company’s products may not be correct; the productivity of our direct sales force and distributors; risks related to product demand and market acceptance of the Company’s products; risks that the Company’s products may fail to provide the desired safety and efficacy; risks related to attracting, training and retaining sales representatives and other employees; risks related to government mandated or voluntary recalls that could occur as a result of component failures, manufacturing errors or design defects, the significant competition the Company faces from other companies, technologies, and alternative medical procedures; the risk that the Company may fail to expand its product offerings through internal development or acquisition; the risk that the Company is not successful in transitioning to a direct-selling model in new territories; the risk that the Company experiences production delays or quality difficulties in the consolidation of its manufacturing operations; the general uncertainty related to seeking regulatory approvals for the Company’s products; adverse conditions in the general domestic and global economic markets and other risks and uncertainties included under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, as updated by our subsequent filings with the SEC, all of which are available on the Company’s investor relations website at http://www.lemaitre.com and on the SEC’s website at http://www.sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

 

Page 4


Financial Statements

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

 

     December 31, 2011     December 31, 2010  
     (unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 20,132      $ 22,614   

Accounts receivable, net

     8,541        8,475   

Inventories

     8,003        8,375   

Other current assets

     3,011        3,447   
  

 

 

   

 

 

 

Total current assets

     39,687        42,911   

Property and equipment, net

     4,661        3,806   

Goodwill

     11,917        11,917   

Other intangibles, net

     2,985        3,686   

Deferred tax assets

     6        134   

Other assets

     431        820   
  

 

 

   

 

 

 

Total assets

   $ 59,687      $ 63,274   
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 981      $ 1,320   

Accrued expenses

     5,539        8,628   

Acquisition-related obligations

     19        441   
  

 

 

   

 

 

 

Total current liabilities

     6,539        10,389   

Deferred tax liabilities

     989        443   

Other long-term liabilities

     71        86   
  

 

 

   

 

 

 

Total liabilities

     7,599        10,918   

Stockholders’ equity

    

Common stock

     163        161   

Additional paid-in capital

     64,619        64,642   

Accumulated deficit

     (6,440     (8,583

Accumulated other comprehensive loss

     (606     (429

Less: treasury stock

     (5,648     (3,435
  

 

 

   

 

 

 

Total stockholders’ equity

     52,088        52,356   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 59,687      $ 63,274   
  

 

 

   

 

 

 

 

Page 5


LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(amounts in thousands, except per share amounts)

(unaudited)

 

     For the three months ended     For the year ended  
     December 31, 2011     December 31, 2010     December 31, 2011     December 31, 2010  

Net sales

   $ 13,411      $ 14,431      $ 57,685      $ 56,060   

Cost of sales

     3,888        4,084        17,458        14,341   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     9,523        10,347        40,227        41,719   

Operating expenses:

        

Sales and marketing

     4,729        5,070        19,375        19,409   

General and administrative

     2,711        2,864        11,228        10,506   

Research and development

     1,139        1,475        4,425        5,488   

Restructuring charges

     112        1,816        2,161        1,816   

Gain on termination of distribution agreement

     —          —          (735     —     

Impairment charges

     —          417        83        485   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     8,691        11,642        36,537        37,704   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     832        (1,295     3,690        4,015   

Other income (loss):

        

Interest income, net

     4        6        11        26   

Other income (loss), net

     (52     (13     51        (16
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (loss), net

     (48     (7     62        10   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     784        (1,302     3,752        4,025   

Provision (benefit) for income taxes

     438        (3,266     1,609        (1,988
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 346      $ 1,964      $ 2,143      $ 6,013   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share of common stock:

        

Basic

   $ 0.02      $ 0.13      $ 0.14      $ 0.38   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.02      $ 0.12      $ 0.13      $ 0.37   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     15,407        15,596        15,458        15,627   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     15,821        16,148        15,989        16,114   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends declared per common share

   $ 0.02      $ —        $ 0.08      $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 6


LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

SELECTED NET SALES INFORMATION

(amounts in thousands)

(unaudited)

 

     For the three months ended     For the year ended  
     December 31, 2011     December 31, 2010     December 31, 2011     December 31, 2010  
     $      %     $      %     $      %     $      %  

Net Sales by Product Category:

                    

Open Vascular

   $ 11,004         82   $ 10,287         71   $ 44,408         77   $ 40,022         71

Endovascular and other

     2,407         18     4,144         29     13,277         23     16,038         29
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Net Sales

   $ 13,411         100   $ 14,431         100   $ 57,685         100   $ 56,060         100
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Net Sales by Geography

                    

Americas

   $ 8,974         67   $ 8,768         61   $ 36,958         64   $ 34,575         62

International

     4,437         33     5,663         39     20,727         36     21,485         38
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Net Sales

   $ 13,411         100   $ 14,431         100   $ 57,685         100   $ 56,060         100
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

IMPACT OF FOREIGN CURRENCY AND BUSINESS ACTIVITIES

(amounts in thousands)

(unaudited)

 

     2011     2010      2009  
     Q4     Q3     Q2     Q1     Q4     Q3     Q2     Q1      Q4      Q3     Q2     Q1  

Total net sales

     13,411        14,564        15,112        14,598        14,431        13,656        14,158        13,815         13,584         13,346        12,630        11,348   

Impact of currency exchange rate fluctuations (1)

     15        431        669        10        (420     (418     (336     314         613         (215     (699     (622

Net impact of acquisitions and distributed sales, excluding currency exchange rate fluctuations (2)

     260        319        335        328        156        —          —          95         397         333        234        101   

Net impact of discontinued products, excluding currency rate fluctuations (3)

     (1,904     (370     (76     (45     (100     (105     (65     —           —           —          —          —     

 

(1) Represents the impact of the change in foreign exchange rates compared to the corresponding quarter of the prior year based on the weighted average exchange rate for each quarter.
(2) Represents the impact of sales of products of acquired businesses and distributed sales of other manufacturers’ based on 12 months’ sales following the date of the event or transaction, for the current period only.
(3) Represents the impact of sales related to discontinued and divested products, and discontinued distributed sales of other manufacturers’ products, based on 12 months’ sales following the date of the event or transaction, for the prior period only.

 

Page 7


LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

NON-GAAP FINANCIAL MEASURES

(amounts in thousands)

(unaudited)

 

Reconciliation between GAAP and Non-GAAP sales growth:

       

For the three months ending December 31, 2011

       

Net sales as reported

   $ 13,411        

Impact of currency exchange rate fluctuations

     (15     

Net impact of acquisitions and distributed sales excluding currency

     (260     
  

 

 

      

Adjusted net sales

     $ 13,136      

For the three months ending December 31, 2010

       

Net Sales as reported

   $ 14,431        

Net impact of discontinued products sales excluding currency

                 (1,904     
  

 

 

      

Adjusted net sales

     $             12,527      
    

 

 

    

Adjusted net sales increase for the three months ending December 31, 2011

     $ 609         5
    

 

 

    

 

 

 

Reconciliation between GAAP and Non-GAAP Americas sales growth:

       

For the three months ending December 31, 2011

       

Net sales as reported

   $ 8,974        

Net impact of acquisitions and distributed sales excluding currency

     (12     
  

 

 

      

Adjusted net sales

     $ 8,962      

For the three months ending December 31, 2010

       

Net Sales as reported

   $ 8,768        

Net impact of discontinued products sales excluding currency

     (126     
  

 

 

      

Adjusted net sales

     $ 8,642      
    

 

 

    

Adjusted net sales increase for the three months ending December 31, 2011

     $ 320                         4
    

 

 

    

 

 

 

Reconciliation between GAAP and Non-GAAP International sales growth:

       

For the three months ending December 31, 2011

       

Net sales as reported

   $ 4,437        

Impact of currency exchange rate fluctuations

     (15     

Net impact of acquisitions and distributed sales excluding currency

     (248     
  

 

 

      

Adjusted net sales

     $ 4,174      

For the three months ending December 31, 2010

       

Net Sales as reported

   $ 5,663        

Net impact of discontinued products sales excluding currency

     (1,778     
  

 

 

      

Adjusted net sales

     $ 3,885      
    

 

 

    

Adjusted net sales increase for the three months ending December 31, 2011

     $ 289         7
    

 

 

    

 

 

 

Reconciliation between GAAP and Non-GAAP sales growth:

       

For the year ending December 31, 2011

       

Net sales as reported

   $ 57,685        

Impact of currency exchange rate fluctuations

     (1,125     

Net impact of acquisitions and distributed sales excluding currency

     (1,242     
  

 

 

      

Adjusted net sales

     $ 55,318      

For the year ending December 31, 2010

       

Net Sales as reported

   $ 56,060        

Net impact of discontinued products sales excluding currency

     (2,395     
  

 

 

      

Adjusted net sales

     $ 53,665      
    

 

 

    

Adjusted net sales increase for the year ending December 31, 2011

     $ 1,653         3
    

 

 

    

 

 

 

 

Page 8


     For the three months ended     For the year ended  
     December 31, 2011      December 30, 2010     December 31, 2011     December 31, 2010  

Reconciliation between GAAP and Non-GAAP income from operations:

         

Income (loss) from operations as reported

   $ 832       $ (1,295   $ 3,690      $ 4,015   

Inventory write-off from terminated product line

     —           —          361        —     

Restructuring charges

     112         1,816        2,161        1,816   

Gain on termination of distribution agreement

     —           —          (735     —     

Impairment charges

     —           417        83        485   
  

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted income from operations

   $ 944       $ 938      $ 5,560      $ 6,316   
  

 

 

    

 

 

   

 

 

   

 

 

 

 

     For the three months ended     For the year ended  
     December 31, 2011     December 30, 2010     December 31, 2011     December 31, 2010  

Reconciliation between GAAP and Non-GAAP operating expenses:

        

Operating expenses as reported

   $ 8,691      $ 11,642      $ 36,537      $ 37,704   

Restructuring charges

     (112     (1,816     (2,161     (1,816

Gain on termination of distribution agreement

     —          —          735        —     

Impairment charges

     —          (417     (83     (485
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating expenses

   $ 8,579      $ 9,409      $ 35,028      $ 35,403   
  

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation between GAAP and Non-GAAP sales growth for Quarterly Guidance:

        

For the three months ending March 31, 2012

        

Net sales per guidance

   $ 13,840         

Impact of currency exchange rate fluctuations

     149         
  

 

 

       

Adjusted net sales

     $ 13,989       

For the three months ending March 31, 2011

     14,594         

Net impact of discontinued products sales excluding currency

     (1,584      
  

 

 

       

Adjusted net sales

     $ 13,010       
    

 

 

     

Adjusted net sales increase for the three months ending March 31, 2012

     $ 979        8  
    

 

 

   

 

 

   

Reconciliation between GAAP and Non-GAAP sales growth for Annual Guidance:

        

For the year ending December 31, 2012

        

Net sales per guidance

   $ 57,500         

Impact of currency exchange rate fluctuations

     701         
  

 

 

       

Adjusted net sales

     $ 58,201       

For the year ending December 31, 2011

     57,685         

Net impact of discontinued products sales excluding currency

     (4,068      
  

 

 

       

Adjusted net sales

     $ 53,617       
    

 

 

     

Adjusted net sales increase for the year ending December 31, 2012

     $ 4,584        9  
    

 

 

   

 

 

   

 

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