COVER STORY

Edwards Lifesciences Corp. (Irvine, CA) has experienced steady financial growth in recent years. Since 2002, the company's share price has more than doubled to its current value of about $49. Such appreciation has enabled the company to garner continued investor interest, despite the fact that the company does not pay dividends.

For the third quarter of 2007, Edwards reported net income of $29.1 million on sales of $261.4 million, compared with net income of $27.8 million on sales of $247.4 million in the year-ago period. For full-year 2007, the company expected to report total sales of between $1.07 and $1.11 billion as of December 7, 2007. The company's heart valve therapy business was expected to lead sales with between $510 million to $520 million, and the company's critical-care business was expected to contribute another $385 million to $395 million in 2007 revenues. The company also expected between $55 million and $60 million in cardiac surgery systems sales, as well as between $85 million and $95 million in vascular sales.

In 2008, Edwards expects total sales of between $1.16 billion and $1.21 billion, with expected earnings-per-share growth of between 11 and 14%. Such top-line growth is expected despite the company's plans to divest its LifeStent product line, which was the key growth driver for the company's vascular sales during 2007.

During 2008, the company expects to strengthen its position in the heart valve and critical-care markets through product launches and enhancements. In both markets, the company is forecasting underlying sales growth of 8 to 10%. "We expect 2008 to be a very successful and important year for Edwards Lifesciences," said Michael A. Mussallem, Edwards' chairman and CEO.

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