SOURCE: Edwards Lifesciences

Edwards Lifesciences

October 21, 2009 16:01 ET

Strong Sales Growth Drives Edwards Lifesciences' Third Quarter Results

U.S. Surgical Heart Valves Lift Company's Sales Growth

Transcatheter Heart Valve Sales Double

$38.2 Million Net Pre-Tax Special Gain

IRVINE, CA--(Marketwire - October 21, 2009) - Edwards Lifesciences Corporation (NYSE: EW), a world leader in products and technologies to treat advanced cardiovascular disease, today reported net income for the quarter ended September 30, 2009 of $73.5 million, or $1.25 per diluted share, compared to net income of $32.9 million, or $0.56 per diluted share, for the same period in 2008. Excluding special items detailed in the reconciliation table below, third quarter 2009 net income was $41.8 million, or $0.71 per diluted share. Third quarter diluted earnings per share increased 123.2 percent over last year. Excluding special items, diluted earnings per share grew 26.8 percent.

Third quarter net sales increased 7.3 percent to $325.7 million. Underlying(1) sales growth was 13.1 percent, which excludes a $3.4 million negative impact from foreign exchange and an $11.9 million reduction from divested products.

"We are pleased to report strong third quarter sales and earnings growth, led by Heart Valve Therapy," said Michael A. Mussallem, Edwards Lifesciences' chairman and CEO. "In addition, Critical Care sales growth stepped up during the quarter."

"This quarter's results were also highlighted by strong international transcatheter valve sales growth and the recent approval of 2010 reimbursement in Germany. We also continued to make steady progress on U.S. approval and next generation systems."

Sales Results

For the third quarter, the company reported Heart Valve Therapy sales of $174.1 million. Excluding the impact of $2.1 million from foreign exchange, underlying growth of 19.2 percent over prior year was driven by new products.

"In the U.S., surgical heart valve sales increased to double-digit growth, driven by our new Magna valves. Additionally, transcatheter heart valve sales doubled in the quarter to $26.4 million and we now expect 2009 sales of approximately $110 million," said Mussallem.

Critical Care sales were $114.2 million for the quarter. Underlying growth of 8.4 percent over prior year excludes a $0.5 million reduction from foreign exchange, as well as the impact of the divested hemofiltration product line.

"Underlying growth increased substantially from a first half rate of 2.0 percent, driven by strong sales from our FloTrac and pressure monitoring products," said Mussallem.

Cardiac Surgery Systems sales for the quarter were $22.3 million. Excluding foreign exchange, underlying growth was 6.2 percent over prior year due to strong international sales, partially offset by a voluntary product recall.

Vascular sales were $15.1 million, a decline from $23.5 million in the same quarter last year due primarily to the divestiture of the LifeStent product line.

Domestic and international sales for the third quarter were $137.0 million and $188.7 million, respectively.

Additional Operating Results

For the quarter, Edwards' gross profit margin was 69.8 percent compared to 65.4 percent in the same period last year. This improvement was due primarily to product mix and, to a lesser extent, the favorable impact of foreign exchange.

Selling, general and administrative expenses were $126.1 million for the quarter, or 38.7 percent of sales, compared to $119.3 million in the prior year. The increase was driven by higher sales and marketing expenses, primarily for the Edwards SAPIEN transcatheter heart valve program in Europe, partially offset by foreign exchange.

Research and development expenses (R&D) for the quarter were $44.7 million, or 13.7 percent of sales. As a result of additional spending on transcatheter heart valve technology and glucose monitoring, R&D investments increased 27.4 percent compared to prior year.

During the quarter, Edwards recorded a number of special items that resulted in a net $38.2 million pre-tax gain. The main components were a $43.6 million gain associated with the sale of the company's hemofiltration product line, a $15.0 million gain from the achievement of the final LifeStent milestone, and a $15.0 million charge for a charitable contribution to The Edwards Lifesciences Fund. All of the components of the net special gain are detailed in the reconciliation table below.

Free cash flow for the quarter was $74.4 million, calculated as cash from operating activities of $71.5 million, minus capital expenditures of $12.1 million, plus $15.0 million related to the charitable fund contribution.

Total debt at September 30, 2009 was $102.3 million. Cash and cash equivalents were $287.6 million at the end of the quarter, resulting in net cash of $185.3 million.

During the quarter, the company repurchased 385,000 shares of common stock for $25.1 million.

Nine-Month Results

For the nine months ended September 30, 2009, the company recorded net income of $181.5 million, or $3.10 per diluted share, compared to $90.8 million, or $1.54 per diluted share for 2008. Excluding special items detailed in the reconciliation table below, net income for the first nine months in 2009 was $129.2 million, or $2.20 per diluted share, compared to $105.1 million, or $1.78 per diluted share, for the same period last year. For the nine months ended September 30, 2009, diluted earnings per share increased 101.3 percent over last year. Excluding special items, diluted earnings per share grew 23.6 percent.

Net sales for the first nine months of 2009 increased 5.0 percent to $974.7 million. Underlying sales growth was 11.4 percent, which excludes a $31.8 million negative impact from foreign exchange and $20.2 million reduction from discontinued products.

Domestic and international sales for the nine months were $415.4 million and $559.3 million, respectively.

During the first nine months, the company repurchased 1.3 million shares of common stock for $79.6 million.

2009 Outlook

"Based on strong year-to-date results, we are increasing our full year sales guidance to between $1.305 and $1.325 billion for 2009 and we continue to expect to meet or exceed all of our previously stated financial goals," said Mussallem.

"Excluding special items, we estimate that fourth quarter 2009 diluted earnings per share will be between $0.82 and $0.86. For full year 2009, excluding special items, we are increasing the mid-point of our guidance for diluted earnings per share and our new range is $3.02 to $3.06, representing an annual growth rate of 18 to 20 percent."

About Edwards Lifesciences

Edwards Lifesciences is the global leader in the science of heart valves and hemodynamic monitoring, with more than five decades of experience in partnering with clinicians to develop life-saving innovations. Headquartered in Irvine, Calif., Edwards treats advanced cardiovascular disease with its market-leading heart valve therapies, and critical care and vascular technologies, which are sold in approximately 100 countries. The company's global brands include Carpentier-Edwards, Cosgrove-Edwards, Edwards SAPIEN, FloTrac, Fogarty, PERIMOUNT Magna and Swan-Ganz. Additional company information can be found at http://www.edwards.com.

Conference Call and Webcast Information

Edwards Lifesciences will be hosting a conference call today at 5:00 p.m. ET to discuss its third quarter results. To participate in the conference call, dial (877) 407-8037 or (201) 689-8037. For 72 hours following the call, an audio replay can be accessed by dialing (877) 660-6853 or (201) 612-7415 and using account number 2995 and conference number 334198. The call will also be available via live or archived webcast on the "Investor Relations" section of the Edwards web site at www.edwards.com or www.edwards.com/InvestorRelations.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can sometimes be identified by the use of words such as "may," "will," "should," "anticipate," "believe," "plan," "project," "estimate," "expect," "intend," or other similar expressions and include, but are not limited to, the company's financial goals or expectations for sales, gross profit margin improvement, net income, earnings per share and free cash flow; regulatory approval of new products in, and competitive dynamics associated with, the company's heart valve therapy product line; the continued adoption and sales of the FloTrac system; the timing and progress of clinical studies relating to the company's transcatheter valve technologies and the market opportunity for these products; and the impact of foreign exchange and special items on the company's results. Forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict. Our forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement.

Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements include the opportunities for the company's transcatheter valve programs and the ability of the company to continue to lead in the development of this field; the company's success in creating new market opportunities for its products and the timing of new product launches; the impact of currency exchange rates; the timing or results of pending or future clinical trials; actions by the U.S. Food and Drug Administration and other regulatory agencies; and other risks detailed in the company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2008.

To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the company uses non-GAAP financial measures that exclude certain items, such as special charges and gains, results of discontinued and acquired product lines, and fluctuations in exchange rates. Management does not consider the excluded items part of day-to-day business or reflective of the core operational activities of the company as they result from transactions outside the ordinary course of business. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. Certain guidance is provided on a non-GAAP (or "underlying") basis that excludes special items and foreign exchange fluctuations due to the inherent difficulty in forecasting such items. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of the company's core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Edwards and Magna Ease are trademarks of Edwards Lifesciences Corporation. Edwards Lifesciences, the stylized E logo, Carpentier-Edwards, Cosgrove-Edwards, Edwards SAPIEN, FloTrac, Fogarty, Magna, PERIMOUNT Magna and Swan-Ganz are trademarks of Edwards Lifesciences Corporation and are registered in the United States Patent and Trademark Office.

(1) "Underlying" amounts are non-GAAP items and exclude discontinued and newly acquired products, foreign exchange fluctuations and other adjustments. See the reconciliation table below.

EDWARDS LIFESCIENCES CORPORATION
Unaudited Consolidated Statements of Operations

                                          Three Months      Nine Months
                                              Ended             Ended
                                          September 30,     September 30,
(in millions, except per share data)      2009     2008     2009     2008
                                        -------  -------  -------  -------

Net sales                               $ 325.7  $ 303.6  $ 974.7  $ 928.0
Cost of goods sold                         98.5    104.9    297.4    320.8
                                        -------  -------  -------  -------

Gross profit                              227.2    198.7    677.3    607.2

Selling, general and administrative
 expenses                                 126.1    119.3    376.5    360.4
Research and development expenses          44.7     35.1    127.2    103.4
Special (gains) charges, net              (38.2)       -    (67.5)     9.3
Interest expense (income), net              0.6     (0.4)     0.9      0.4
Other (income) expense, net                (0.2)     1.1     (1.8)     3.3
                                        -------  -------  -------  -------

Income before provision for income
 taxes                                     94.2     43.6    242.0    130.4

Provision for income taxes                 20.7     10.7     60.5     39.6
                                        -------  -------  -------  -------

Net income                              $  73.5  $  32.9  $ 181.5  $  90.8
                                        =======  =======  =======  =======

Earnings per share:
     Basic earnings per share           $  1.30  $  0.59  $  3.23  $  1.63
     Diluted earnings per share         $  1.25  $  0.56  $  3.10  $  1.54

Weighted average common shares
 outstanding:
     Basic                                 56.4     56.0     56.2     55.8
     Diluted                               58.7     59.0     58.6     60.1

                                        -------  -------  -------  -------
Operating Statistics
As a percentage of net sales:
     Gross profit                          69.8%    65.4%    69.5%    65.4%
     Selling, general and
      administrative expenses              38.7%    39.3%    38.6%    38.8%
     Research and development expenses     13.7%    11.6%    13.1%    11.1%
     Income before provision for income
      taxes                                28.9%    14.4%    24.8%    14.1%
     Net income                            22.6%    10.8%    18.6%     9.8%

Effective tax rate                         22.0%    24.5%    25.0%    30.4%
                                        -------  -------  -------  -------

                                        -------  -------  -------  -------
Computation of Diluted Earnings per
 Share
Net income                              $  73.5  $  32.9  $ 181.5  $  90.8
Adjustment for convertible debt
 interest expense                             -        -        -      1.7
                                        -------  -------  -------  -------
Adjusted net income                     $  73.5  $  32.9  $ 181.5  $  92.5
                                        -------  -------  -------  -------

Weighted-average common shares
 outstanding used to calculate
 diluted earnings per share
 excluding convertible debt                58.7     59.0     58.6     58.5
Weighted-average common shares
 outstanding for the convertible debt         -        -        -      1.6
                                        -------  -------  -------  -------
Weighted-average common shares
 outstanding used to calculate diluted
 earnings per share including the
 convertible debt                          58.7     59.0     58.6     60.1
                                        -------  -------  -------  -------

Diluted earnings per share including
 the convertible debt                   $  1.25  $  0.56  $  3.10  $  1.54
                                        =======  =======  =======  =======

Note: Numbers may not calculate due to rounding


EDWARDS LIFESCIENCES CORPORATION
Unaudited Balance Sheets
(in millions)

                                              September 30,  December 31,
                                                  2009           2008
                                              -------------  -------------
ASSETS
Current assets
Cash and cash equivalents                     $       287.6  $       218.7
Short-term investments                                  1.9            8.1
Accounts and other receivables, net (1)               280.5          204.7
Inventories, net                                      168.7          151.8
Deferred income taxes                                  44.7           42.4
Prepaid expenses                                       40.7           30.7
Other current assets                                   38.9           35.5
                                              -------------  -------------
     Total current assets                             863.0          691.9

Property, plant and equipment, net                    240.7          230.1
Goodwill                                              315.2          315.7
Other intangible assets, net                           91.0           96.9
Investments in unconsolidated affiliates               24.8           14.7
Deferred income taxes                                  39.6           37.7
Other assets                                           13.7           13.2
                                              -------------  -------------

     Total assets                             $     1,588.0  $     1,400.2
                                              =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities      $       282.1  $       258.5
Long-term debt                                        102.3          175.5
Other long-term liabilities                           113.1           87.4

Stockholders' equity
Common stock                                           75.4           73.7
Additional contributed capital                      1,019.5          940.4
Retained earnings                                     858.4          676.9
Accumulated other comprehensive loss                   (6.4)         (35.4)
Common stock in treasury, at cost                    (856.4)        (776.8)
                                              -------------  -------------
     Total stockholders' equity                     1,090.5          878.8
                                              -------------  -------------

Total liabilities and stockholders' equity    $     1,588.0  $     1,400.2
                                              =============  =============

 (1)  The Company terminated its securitization program in Japan in
      February 2009.  As a result, "Accounts and other receivables, net"
      increased $45.7 million.


EDWARDS LIFESCIENCES CORPORATION
Non-GAAP Financial Information

To supplement the consolidated financial results prepared in accordance
with Generally Accepted Accounting Principles ("GAAP"), the Company uses
non-GAAP financial measures that exclude certain items such as special
charges and gains, results of discontinued products, and fluctuations in
exchange rates.  Management does not consider the excluded items part of
day-to-day business or reflective of the core operational activities of the
Company as they result from transactions outside the ordinary course of
business.

Management uses non-GAAP financial measures internally for strategic
decision making, forecasting future results and evaluating current
performance.  Certain guidance is provided only on a non-GAAP (or
"underlying") basis that excludes special items and foreign exchange
fluctuations due to the inherent difficulty in forecasting such items.  By
disclosing non-GAAP financial measures, management intends to provide
investors with a more meaningful, consistent comparison of the Company's
core operating results and trends for the periods presented.

Non-GAAP financial measures are not prepared in accordance with GAAP;
therefore, the information is not necessarily comparable to other companies
and should be considered as a supplement to, not a substitute for, nor
superior to, the corresponding measures calculated in accordance with GAAP.

The items described below are excluded from the GAAP financial results in
the reconciliations that follow:

Gross profit - In the fourth quarter of 2008, the Company increased by $4.7
million its non-GAAP gross profit to exclude the impact of its voluntary
retrieval of certain ring repair products pending clearance of its 510k
application submission from the Food and Drug Administration. Upon the
return of most of these ring repair products to customers in the second
quarter of 2009, the Company excluded the $4.1 million impact from its non-
GAAP gross profit. Given the magnitude and unusual nature of this
adjustment relative to the operating results for the period presented, the
financial impact of the retrieval has been excluded from non-GAAP net
income.

Special (gains) charges, net - The Company incurred certain special charges
and gains in 2009 and 2008 related to the following:

1)  Milestone receipt and net (gain) loss on sale of assets:  $43.6 million
    gain in the third quarter of 2009 and $1.5 million charge in the second
    quarter of 2009 related to the sale of the hemofiltration product line;
    $15.0 million gain in the third quarter of 2009 and $27.0 million gain
    in the first quarter of 2009 for achieving milestones associated with
    the sale of the LifeStent product line; $8.1 million net loss on the
    sale of the LifeStent product line in the first quarter of 2008;

2)  Charitable fund contribution:  $15.0 million charge in the third
    quarter of 2009 for a charitable contribution to The Edwards
    Lifesciences Fund;

3)  Litigation reserves:  $3.8 million charge in the third quarter of
    2009 for a litigation reserve; $2.1 million charge for a litigation
    settlement in the first quarter of 2008;

4)  Investment impairment:  $1.6 million charge in the third quarter of
    2009 related to the impairment of an investment in an unconsolidated
    affiliate;

5)  Sale of distribution rights:  $2.8 million gain in the first quarter
    of 2009 related to the sale of distribution rights in Europe of a
    specialty vascular graft;

6)  Reserve reversal:  $1.0 million gain in the first quarter of 2009
    resulting from completion of the Lifepath AAA clinical obligations;

7)  Realignment expenses, net:  $1.3 million charge for executive severance
    in the first quarter of 2008 associated with the Company's business
    realignment, offset by a $1.4 million gain in the first quarter of 2008
    from the reversal of previously accrued severance costs from the fourth
    quarter of 2007 related to the sale of the LifeStent product line; $0.8
    million gain in the second quarter of 2008 from the reversal of
    previously accrued severance costs in the fourth quarter of 2007
    related to the global reduction in workforce.

Given the magnitude and unusual nature of these special charges and gains
relative to the operating results for the periods presented, these items
have been excluded from non-GAAP net income.

Results of Discontinued and Other Products – The Company has discontinued
certain products during the periods presented.  As discontinued products do
not have a continuing contribution to operations, management believes that
excluding such items from the Company's sales growth provides investors
with a means of evaluating the Company's on-going operations. In light of
the significance of the impact these products had on the sales growth of
the Company, the sales results of these products have been detailed in the
"Unaudited Reconciliation of Sales by Product Line and Region."

Foreign Exchange - Fluctuation in exchange rates impacts the comparative
results and sales growth rates of the Company's underlying business.
Management believes that excluding the impact of foreign exchange rate
fluctuations from its sales growth provides investors a more meaningful
comparison to historical financial results. The impact of foreign exchange
rate fluctuations has been detailed in the "Unaudited Reconciliation of
Sales by Product Line and Region."



EDWARDS LIFESCIENCES CORPORATION
Reconciliation of GAAP to Non-GAAP Financial Information


                                          Three Months      Nine Months
                                              Ended             Ended
                                          September 30,     September 30,
(in millions, except per share data)      2009     2008     2009     2008
                                        -------  -------- -------  -------

GAAP net income                         $  73.5  $   32.9 $ 181.5  $  90.8

Reconciling items:

 Gross profit
    Sale of ring repair products              -         -    (4.1)       -

 Special (gains) charges, net
1)  Milestone receipt and net (gain)
    loss on sale of assets                (58.6)        -   (84.1)     8.1
2)  Charitable fund contribution           15.0         -    15.0        -
3)  Litigation reserves                     3.8         -     3.8      2.1
4)  Investment impairment                   1.6         -     1.6        -
5)  Sale of distribution rights               -         -    (2.8)       -
6)  Reserve reversal                          -         -    (1.0)       -
7)  Realignment expenses, net                 -         -       -     (0.9)
                                        -------  -------- -------  -------
    Total special (gains) charges, net    (38.2)        -   (67.5)     9.3

 Provision for income taxes
    Tax effect on non-GAAP adjustments(A)   6.5         -    19.3      5.0
                                        -------  -------- -------  -------
    Total provision for income taxes,
     net                                    6.5         -    19.3      5.0

                                        -------  -------- -------  -------
Non-GAAP net income                     $  41.8  $   32.9 $ 129.2  $ 105.1
                                        =======  ======== =======  =======

Non-GAAP earnings per share:
Basic non-GAAP earnings per share       $  0.74  $   0.59 $  2.30  $  1.88
Diluted non-GAAP earnings per share (B) $  0.71  $   0.56 $  2.20  $  1.78

Non-GAAP weighted average shares
 outstanding:
Basic                                      56.4      56.0    56.2     55.8
Diluted                                    58.7      59.0    58.6     60.1


Notes 1 - 7: See description of "Special (gains) charges, net" on the
previous page.

(A)  The tax effect on non-GAAP adjustments is calculated using the
relevant tax jurisdictions' statutory tax rates.

(B)  Diluted non-GAAP earnings per share for 2008 was calculated by adding
back to net income $1.7 million for the nine month period in interest
expense related to previous convertible debt, then dividing by the
weighted-average diluted shares outstanding.  The convertible debt was
redeemed in June 2008.

Note: Numbers may not calculate due to rounding




EDWARDS LIFESCIENCES CORPORATION
Unaudited Reconciliation of
Sales by Product Line and Region
(in millions)

                                                            GAAP
                                                          Growth
Sales by Product Line (QTD)    3Q 2009  3Q 2008  Change     Rate
                               -------- -------- -------  -------
Heart Valve Therapy            $  174.1 $  148.4 $  25.7     17.3%
Critical Care                     114.2    110.3     3.9      3.5%
Cardiac Surgery Systems            22.3     21.4     0.9      4.2%
Vascular                           15.1     23.5    (8.4)   (35.7%)
                               -------- -------- -------  -------
Total Sales                    $  325.7 $  303.6 $  22.1      7.3%
                               -------- -------- -------  -------

                      2009 Adjusted       2008 Adjusted
                   ----------------- --------------------------
                Discontinued      Discontinued
                   /Other            /Other
                   Product 3Q 2009   Product           3Q 2008  Underlying
Sales by Product     Line  Underlying Line      FX     Underlying  Growth
 Line (QTD)         Impact    Sales   Impact   Impact    Sales      Rate
                   -------  -------- -------  -------  --------  --------
Heart Valve
 Therapy           $     -  $  174.1 $  (0.2) $  (2.1) $  146.1      19.2%
Critical Care            -     114.2    (4.3)    (0.5)    105.5       8.4%
Cardiac Surgery
 Systems                 -      22.3       -     (0.4)     21.0       6.2%
Vascular              (1.9)     13.2    (9.3)    (0.4)     13.8      (4.9%)
                   -------  -------- -------  -------  -------- ---------
Total Sales        $  (1.9) $  323.8 $ (13.8) $  (3.4) $  286.4      13.1%
                   -------  -------- -------  -------  -------- ---------


                                                            GAAP
                                YTD 3Q   YTD 3Q           Growth
Sales by Product Line (YTD)      2009     2008   Change     Rate
                               -------- -------- -------  -------
Heart Valve Therapy            $  526.6 $  457.7 $  68.9     15.1%
Critical Care                     331.7    333.6    (1.9)    (0.6%)
Cardiac Surgery Systems            68.9     66.3     2.6      3.9%
Vascular                           47.5     70.4   (22.9)   (32.5%)
                               -------- -------- -------  -------
Total Sales                    $  974.7 $  928.0 $  46.7      5.0%
                               -------- -------- -------  -------


                      2009 Adjusted       2008 Adjusted
                   ----------------- -------------------------
                Discontinued      Discontinued
                   /Other            /Other
                   Product  YTD 2009 Product           YTD 2008  Underlying
Sales by Product     Line  Underlying Line      FX    Underlying  Growth
 Line (QTD)         Impact    Sales  Impact   Impact    Sales      Rate
                   -------  -------- -------  -------  --------  --------
Heart Valve
 Therapy           $  (4.2) $  522.4 $  (0.2) $ (17.4) $  440.1      18.7%
Critical Care            -     331.7    (4.9)   (10.0)    318.7       4.1%
Cardiac Surgery
 Systems              (0.1)     68.8    (0.2)    (2.3)     63.8       7.8%
Vascular              (7.8)     39.7   (27.0)    (2.1)     41.3      (4.4%)
                   -------  -------- -------  -------  --------  --------
Total Sales        $ (12.1) $  962.6 $ (32.3) $ (31.8) $  863.9      11.4%
                   -------  -------- -------  -------  --------  --------



                                                             GAAP
                                                           Growth
Sales by Region (QTD)           3Q 2009  3Q 2008  Change     Rate
                               -------- -------- -------  -------
United States                  $  137.0 $  135.6 $   1.4      1.0%
                               -------- -------- -------  -------
     Europe                        97.0     89.6     7.4      8.3%
     Japan                         52.6     42.4    10.2     24.1%
     Rest of World                 39.1     36.0     3.1      8.6%
                               -------- -------- -------  -------
International                     188.7    168.0    20.7     12.3%
                               -------- -------- -------  -------
Total                          $  325.7 $  303.6 $  22.1      7.3%
                               -------- -------- -------  -------


                                                             GAAP
                                YTD 3Q   YTD 3Q            Growth
Sales by Region (YTD)            2009     2008    Change     Rate
                               -------- -------- -------  -------
United States                  $  415.4 $  410.8 $   4.6      1.1%
                               -------- -------- -------  -------
     Europe                       298.4    286.5    11.9      4.2%
     Japan                        154.4    125.7    28.7     22.8%
     Rest of World                106.5    105.0     1.5      1.4%
                               -------- -------- -------  -------
International                     559.3    517.2    42.1      8.1%
                               -------- -------- -------  -------
Total                          $  974.7 $  928.0 $  46.7      5.0%
                               -------- -------- -------  -------

* Numbers may not calculate due to rounding.

Contact Information

  • Media Contact:
    Amanda C. Fowler
    949-250-5070

    Investor Contact:
    David K. Erickson
    949-250-6826