Originally Published MX January/February 2006
COVER STORY
Growing at the Speed of Sound|
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Since its spin-out from ATL Ultrasound Inc. onto the NASDAQ stock exchange in 1998, SonoSite has played a pivotal role in creating the market for hand-carried ultrasound devices and has established itself as the market leader. According to estimates by industry analysts, SonoSite's installed base of more than 25,000 units has given it a share of the hand-carried ultrasound segment that exceeds 60%.
The company's financial performance has been equally robust. Over the past five years, SonoSite's sales revenues have expanded at a compound annual growth rate of 63%.
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| Stock price for SonoSite Inc. (Bothell, WA), from December 2003 through mid-November 2005, versus the S&P 500. (click to enlarge) |
SonoSite's revenue for the nine months ending September 31, 2005, was $102.3 million, up 30% compared with $78.7 million for the same period of 2004. The April launch of SonoSite's MicroMaxx ultrasound system met with an enthusiastic response. Sales of the new system contributed 33% of the company's revenue in the third quarter of 2005. Should the company meet its financial guidance, revenue for 2005 would be 27–30% greater than the $115.8 million posted in 2004. The company's goal for 2006 revenue is to exceed 2005 by 25%.
After dropping to nearly $10 at the beginning of 2003, SonoSite's share price has risen steadily over the past two years. At press time, the stock was trading at more than $37, approaching its 52-week high of $37.50.
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