Volcano loss increases 35 percent

Volcano Corp. reported an increased first-quarter loss and revenue and warned of more losses for this year than it previously expected.

Expenses associated with an acquisition that it did not consummate, lower interest rates and higher expenses for marketing, research and product development contributed to the loss guidance change, the company said in a press release.

The Rancho Cordova-based company (Nasdaq: VOLC) reported a net loss of $2.3 million, or 5 cents per share, in the quarter ended March 31. That was a 35 percent increase from $1.7 million, or 4 cents per share in the same period last year.

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Revenue rose to $36.6 million, a 24 percent increase from $29.6 million in the first quarter of last year.

Revenue growth resulted from a 30 percent increase in disposable tools used with its intravascular ultrasound systems, which doctors use to view images of the insides of arteries and diagnose cardiovascular disease, the company said in a news release.

The company also said it had $2.9 million in due diligence, legal and accounting expenses related to an uncompleted acquisition. It had stock-based compensation expenses of $1.2 million during the quarter.

Volcano expects revenue this year of $164 million to $168 million, an increase from its prior guidance of $158 million to $162 million. But it has decreased its guidance for earnings for the year. It now expects the annual loss will range from 6 cents to 10 cents per share, instead of the previously estimated 2 cents to 4 cents. The company expects a profitable fourth quarter.