UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                      

Commission file number: 001-09585

ABIOMED, INC.

(Exact name of registrant as specified in its charter)

Delaware	04-2743260
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

22 CHERRY HILL DRIVE

Danvers, Massachusetts 01923

(Address of principal executive offices, including zip code)

(978) 646-1400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	ABMD	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of October 21, 2021, 45,497,490 shares of the registrant’s common stock, $.01 par value, were outstanding.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION:			Page
Item 1.	Condensed Consolidated Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of September 30, 2021 and March 31, 2021	3
	Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2021 and 2020	4
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended September 30, 2021 and 2020	5
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended September 30, 2021 and 2020	6
	Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2021 and 2020	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
PART II - OTHER INFORMATION:
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
Signatures		39

EXPLANATORY NOTES

Pending Trademarks and Registered Marks

Throughout this quarterly report on Form 10-Q (“this Report”), we refer to various trademarks, service marks and trade names that we use in our business. Abiomed, Impella, Impella 2.5, Impella 5.0, Impella LD, Impella CP, Impella RP, Impella 5.5, Impella Connect, and SmartAssist are registered trademarks of Abiomed, Inc., and are registered in the U.S. and certain foreign countries. Impella ECP, Impella XR Sheath, Impella BTR, CVAD STUDY, STEMI DTU, Automated Impella Controller and Abiomed Breethe OXY-1 System are pending trademarks of ABIOMED, Inc. Other trademarks and service marks appearing in this Report are the property of their respective holders.

Company References

Throughout this Report, “ABIOMED, Inc.,” the “Company,” “we,” “us” and “our” refer to ABIOMED, Inc. and its consolidated subsidiaries.

Where You Can Find More Information

We make available, free of charge on our website located at www.abiomed.com, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, as soon as reasonably practicable after filing such reports with or furnishing such reports to the U.S. Securities and Exchange Commission (“SEC”). We also use our website for the distribution of Company information. The information we post on our website may be deemed to be material information. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. The contents of our website are not incorporated by reference into this Report.  

2

PART I. FINANCIAL INFORMATION

ITEM 1: Condensed Consolidated Financial Statements

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)

	September 30, 2021			March 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	241,882		$	232,710
Short-term marketable securities		408,677			350,985
Accounts receivable, net		89,568			97,179
Inventories, net		85,986			81,059
Prepaid expenses and other current assets		45,374			26,032
Total current assets		871,487			787,965
Long-term marketable securities		210,979			264,085
Property and equipment, net		197,184			197,129
Goodwill		78,166			78,568
Other intangibles, net		41,062			42,150
Deferred tax assets		2,975			11,380
Other assets		128,181			113,082
Total assets	$	1,530,034		$	1,494,359
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	27,621		$	34,842
Accrued expenses		56,744			66,046
Deferred revenue		24,078			24,322
Other current liabilities		5,579			3,759
Total current liabilities		114,022			128,969
Other long-term liabilities		8,303			10,162
Contingent consideration		22,314			24,706
Deferred tax liabilities		832			847
Total liabilities		145,471			164,684
Commitments and contingencies (Note 16)
Stockholders' equity:
Class B Preferred Stock, $.01 par value		—			—
Authorized - 1,000,000 shares; Issued and outstanding - none
Common stock, $.01 par value		455			453
Authorized - 100,000,000 shares; Issued 48,197,044 shares as of September 30, 2021 and 47,929,402 shares as of March 31, 2021
Outstanding 45,496,563 shares as of September 30, 2021 and 45,270,948 shares as of March 31, 2021
Additional paid in capital		840,387			800,690
Retained earnings		858,435			828,007
Treasury stock at cost 2,700,481 shares as of September 30, 2021 and 2,658,454 shares as of March 31, 2021		(300,158	)		(288,030	)
Accumulated other comprehensive loss		(14,556	)		(11,445	)
Total stockholders' equity		1,384,563			1,329,675
Total liabilities and stockholders' equity	$	1,530,034		$	1,494,359

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

3

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

	For the Three Months Ended September 30,				For the Six Months Ended September 30,
	2021		2020		2021		2020
Revenue	$	248,142	$	209,764	$	500,727	$	374,614
Costs and expenses:
Cost of revenue		43,886		38,736		89,074		74,719
Research and development		41,041		30,525		78,749		56,882
Selling, general and administrative		102,779		79,167		206,263		147,611
Acquired in-process research and development		—		—		115,490		—
		187,706		148,428		489,576		279,212
Operating income		60,436		61,336		11,151		95,402
Other income:
Investment income, net		977		1,822		2,027		4,219
Other income, net		5,858		9,757		44,743		34,370
		6,835		11,579		46,770		38,589
Income before income taxes		67,271		72,915		57,921		133,991
Income tax provision		10,318		10,702		27,493		27,190
Net income	$	56,953	$	62,213	$	30,428	$	106,801
Net income per share - basic	$	1.25	$	1.38	$	0.67	$	2.37
Weighted average shares outstanding - basic		45,437		45,104		45,374		45,057
Net income per share - diluted	$	1.24	$	1.36	$	0.66	$	2.34
Weighted average shares outstanding - diluted		45,893		45,661		45,857		45,609

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

4

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

	For the Three Months Ended September 30,						For the Six Months Ended September 30,
	2021			2020			2021			2020
Net income	$	56,953		$	62,213		$	30,428		$	106,801
Other comprehensive (loss) income:
Foreign currency translation (losses) gains		(2,693	)		2,416			(2,610	)		3,776
Unrealized gains (losses) on derivative instrument		545			(266	)		328			(726	)
Net unrealized (losses) gains on marketable securities		(197	)		(814	)		(829	)		940
Other comprehensive (loss) income		(2,345	)		1,336			(3,111	)		3,990
Comprehensive income	$	54,608		$	63,549		$	27,317		$	110,791

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

5

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(in thousands, except share data)

	Common Stock						Treasury Stock					Additional Paid			Retained			Accumulated Other			Total Stockholders'
	Shares			Par value			Shares		Amount			in Capital			Earnings			Comprehensive Loss			Equity
Balance, March 31, 2021		45,270,948		$	453			2,658,454	$	(288,030	)	$	800,690		$	828,007		$	(11,445	)	$	1,329,675
Restricted stock units issued		85,284			1			—		—			(1	)		—			—			—
Stock options exercised		55,757			1			—		—			2,119			—			—			2,120
Return of common stock to pay withholding taxes on restricted stock		(34,274	)		(1	)		34,274		(9,589	)		—			—			—			(9,590	)
Stock compensation expense		—			—			—		—			12,608			—			—			12,608
Other comprehensive loss		—			—			—		—			—			—			(766	)		(766	)
Net loss		—			—			—		—			—			(26,525	)		—			(26,525	)
Balance, June 30, 2021		45,377,715		$	454			2,692,728	$	(297,619	)	$	815,416		$	801,482		$	(12,211	)	$	1,307,522
Restricted stock units issued		19,638			—			—		—			—			—			—			—
Stock options exercised		95,916			1			—		—			6,261			—			—			6,262
Return of common stock to pay withholding taxes on restricted stock		(7,753	)		—			7,753		(2,539	)		—			—			—			(2,539	)
Stock issued under employee stock purchase plan		11,047			—			—		—			2,961			—			—			2,961
Stock compensation expense		—			—			—		—			15,749			—			—			15,749
Other comprehensive loss		—			—			—		—			—			—			(2,345	)		(2,345	)
Net income		—			—			—		—			—			56,953			—			56,953
Balance, September 30, 2021		45,496,563		$	455			2,700,481	$	(300,158	)	$	840,387		$	858,435		$	(14,556	)	$	1,384,563

	Common Stock						Treasury Stock					Additional Paid			Retained		Accumulated Other				Total Stockholders'
	Shares			Par value			Shares		Amount			in Capital			Earnings		Comprehensive Loss				Equity
Balance, March 31, 2020		45,008,687		$	450			2,533,374	$	(265,411	)	$	739,133		$	602,482	$	(11,189	)		$	1,065,466
Restricted stock units issued		124,749			1			—		—			(1	)		—		—				—
Stock options exercised		31,488			—			—		—			1,010			—		—				1,010
Return of common stock to pay withholding taxes on restricted stock		(52,515	)		—			52,515		(9,857	)		—			—		—				(9,857	)
Stock compensation expense		—			—			—		—			9,298			—		—				9,298
Stock repurchase program		(67,649	)		(1	)		67,649		(11,309	)		—			—		—				(11,310	)
Other comprehensive income		—			—			—		—			—			—		2,654				2,654
Net income		—			—			—		—			—			44,588		—				44,588
Balance, June 30, 2020		45,044,760		$	450			2,653,538	$	(286,577	)	$	749,440		$	647,070	$	(8,535	)		$	1,101,848
Restricted stock units issued		11,554			—			—		—			—			—		—		&#