Watch List Profile: AtriCure Inc.

Tweet   

AtriCure, Inc. develops and markets precise surgical devices, which create precise lesions used in cardiac and other soft tissue.  Founded in 2000 by a group of medical device specialists, the company has since succeeded in creating a greatly enhanced ablation technology for the treatment of atrial fribulation (AF).  AF is a condition where erratic electronic signals to the heart cause the upper two chambers to quiver rather than beat effectively.  More than 2.5 million Americans are afflicted by AF each year, a condition which makes them five-times more likely to experience a stroke.

The company's primary product is the AtriCure Isolator bipolar ablation system, however, on July 9, the company announced that it had received 510(k) FDA clearance on Isolator Synergy radiofrequency ablation clamps, a significant enhancement to their cardiac tissue ablation offering. 

Since 2004, AtriCure has been experiencing very strong growth.  In 2006 the company reported sales of $38.2 million, nearly double the $19.2 million in reported in 2004.  Analysts are expecting 2007 sales of $48.8 million and for 2008, are calling for sales of $62.4 million.

What’s more, the company’s gross margin is very strong, clocking in at 80% of sales in 2006.  On May 24, 2007, the company announced a private placement of nearly 1.8 million shares of its common stock, for a total of $16.5 million, leaving it in an enviable cash position going forward.