Boston Scientific Announces Second Quarter Results
(July 19, 2005) -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for its second quarter ended June 30, 2005.

Highlights:

  • Net sales of $1.6 billion, an increase of 11 percent

  • Worldwide coronary stent sales of $700 million, an increase of seven percent

  • International sales of $624 million, an increase of 21 percent

  • Net income, excluding net special charges, of $404 million, or 25 percent of net sales

  • Earnings per share, excluding net special charges, of $0.48 per share, an increase of nine percent
  • Net sales for the second quarter were $1.617 billion as compared to $1.460 billion for the second quarter of 2004, an increase of 11 percent. Excluding the favorable impact of $26 million of foreign currency fluctuations, net sales increased nine percent. Worldwide coronary stent sales for the second quarter were $700 million as compared to $652 million for the second quarter of 2004, an increase of seven percent. Worldwide sales of our TAXUS® paclitaxel-eluting coronary stent systems were $663 million, an increase of 11 percent. U.S. sales of our TAXUS® Express2™ paclitaxel-eluting coronary stent system were $467 million.

    Net income for the quarter, excluding net special charges, increased seven percent to $404 million, or $0.48 per share, as compared to $377 million, or $0.44 per share, in the second quarter of 2004. Reported net income for the quarter, including net special charges of $199 million, was $205 million, or $0.24 per share. The net special charges for the quarter consisted principally of purchased in-process research and development costs related to the acquisitions of TriVascular, Inc.; CryoVascular Systems, Inc.; and Rubicon Medical Corporation.

    "We are pleased with the second quarter results, which featured double digit growth on a global basis," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "Particularly impressive was our robust growth in international markets, where sales increased 21 percent. Our TAXUS paclitaxel-eluting stent system continues to be the product of choice in the drug-eluting stent market, and it maintained its leadership position during the quarter. In addition, the Company expanded its pursuit of innovative technologies with the acquisition of companies such as TriVascular, CryoVascular and Rubicon Medical."

    Boston Scientific officials will be discussing these and other issues with analysts on a conference call at 11:00 a.m. (ET) Tuesday, July 19. The Company will webcast the call to all interested parties through its website: www.bostonscientific.com. Please see the website for details on how to access the webcast. The webcast will be available for one year on the Boston Scientific website.

    Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: www.bostonscientific.com.

    The Company discloses non-GAAP or pro forma measures that exclude certain charges. Non-GAAP measures may exclude such items as charges related to purchased in-process research and development and certain litigation. Management uses these measures to establish operational goals, and believes that non-GAAP measures may assist investors in analyzing the underlying trends in the Company's business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for, or as superior to, financial reporting measures prepared in accordance with GAAP.

    This press release contains forward-looking statements. The Company wishes to caution the reader of this press release that actual results may differ from those discussed in the forward-looking statements and may be adversely affected by, among other things, risks associated with new product development and introduction, clinical trials, regulatory approvals, competitive offerings, intellectual property, litigation, the Company's overall business strategy, and other factors described in the Company's filings with the Securities and Exchange Commission.

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