Inside Our Outlook
Although 2006 was a solid year, Edwards is poised to do even better in 2007 and our financial and operational goals should result in another year of strong growth and profitability. Our 2007 financial goals include generating total sales between $1.075 and $1.125 billion, increasing our gross profit margin by 100 to 150 basis points, delivering non-GAAP net income growth of 12% to 14%, and generating free cash flow of $160 to $170 million.
With our focus on advanced cardiovascular disease treatments, Edwards remains committed to further extending our growth and profitability. Together with an unwavering focus on the quality of our work, we are confident we can continue to build upon our reputation as an industry leader and create exceptional shareholder value for Edwards’ stockholders.
One of Edwards’ aspirations is to be recognized as a company that transforms patient care through innovative technology. I am proud that our employees—more than 5,500 globally—all share this commitment and come to work every day knowing they are making a positive difference in the lives of cardiovascular patients around the world. We thank you for your continuing support of Edwards Lifesciences as we continue these efforts.
Sincerely,
Michael A. Mussallem
Chairman and Chief Executive Officer
This letter to stockholders contains figures that are not prepared in conformity with Generally Accepted Accounting Principles (“GAAP”). Management has determined that inclusion of these non-GAAP figures provides a more meaningful comparison of the company’s ongoing operations. View a reconciliation of GAAP to non-GAAP figures in this report.
Although 2006 was a solid year, Edwards is poised to do even better in 2007 and our financial and operational goals should result in another year of strong growth and profitability. Our 2007 financial goals include generating total sales between $1.075 and $1.125 billion, increasing our gross profit margin by 100 to 150 basis points, delivering non-GAAP net income growth of 12% to 14%, and generating free cash flow of $160 to $170 million.
With our focus on advanced cardiovascular disease treatments, Edwards remains committed to further extending our growth and profitability. Together with an unwavering focus on the quality of our work, we are confident we can continue to build upon our reputation as an industry leader and create exceptional shareholder value for Edwards’ stockholders.
One of Edwards’ aspirations is to be recognized as a company that transforms patient care through innovative technology. I am proud that our employees—more than 5,500 globally—all share this commitment and come to work every day knowing they are making a positive difference in the lives of cardiovascular patients around the world. We thank you for your continuing support of Edwards Lifesciences as we continue these efforts.
Sincerely,
Michael A. Mussallem
Chairman and Chief Executive Officer
This letter to stockholders contains figures that are not prepared in conformity with Generally Accepted Accounting Principles (“GAAP”). Management has determined that inclusion of these non-GAAP figures provides a more meaningful comparison of the company’s ongoing operations. View a reconciliation of GAAP to non-GAAP figures in this report.
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