UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K 

CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

February 25, 2020
Date of Report (Date of earliest event reported) 

Penumbra, Inc.
(Exact name of registrant as specified in its charter)

Delaware	001-37557	05-0605598	
(State or other jurisdiction of incorporation or organization)	(Commission File No.)	(I.R.S. employer identification number)	
One Penumbra Place
Alameda, CA 94502
(Address of principal executive offices, including zip code)
 
(510) 748-3200
(Registrant’s telephone number, including area code) 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions: 
						
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
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, Par value $0.001 per share	PEN	The New York Stock Exchange	

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. o

						
Item 2.02.	Results of Operations and Financial Condition.	
 
On February 25, 2020, Penumbra, Inc. issued a press release announcing financial results for the fourth fiscal quarter and year ended December 31, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished on this Current Report on Form 8-K, including the attached exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such a filing, except as expressly set forth by specific reference in such a filing.

Item 9.01.	Financial Statements and Exhibits.	

Exhibit Number	 	Description	
99.1	 	Press release of Penumbra, Inc. dated February 25, 2020.	
104 	 		Cover Page Interactive Data File (formatted as Inline Extensible Business Reporting Language).	

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	Penumbra, Inc.	
 	 	 	
Date: February 25, 2020	By:	/s/ Maggie Yuen	
 	 	Maggie Yuen	
 	 	Chief Financial Officer	

Exhibit 99.1

Penumbra, Inc. Reports Fourth Quarter and Full Year 2019 Financial Results

ALAMEDA, CA, February 25, 2020 (PR Newswire) - Penumbra, Inc. (NYSE: PEN), a global healthcare company focused on innovative therapies, today reported financial results for the fourth quarter and full year ended December 31, 2019.

Financial Highlights:

•Revenue of $145.3 million for the fourth quarter of 2019, an increase of 20.3%, or 20.8% in constant currency1, over the fourth quarter of 2018.
•Revenue of $547.4 million for the full year 2019, an increase of 23.0%, or 24.2% in constant currency1, over the prior year.

Fourth Quarter 2019 Financial Results
Total revenue grew to $145.3 million for the fourth quarter of 2019 compared to $120.8 million for the fourth quarter of 2018, an increase of 20.3%, or 20.8% on a constant currency basis. The United States represented 66% of total revenue and international represented 34% of total revenue for the fourth quarter of 2019. Revenue from sales of neuro products grew to $85.4 million for the fourth quarter of 2019, an increase of 15.4%, or 16.1% on a constant currency basis. Revenue from sales of vascular products grew to $59.8 million for the fourth quarter of 2019, an increase of 27.9%, or 28.1% on a constant currency basis.

Gross profit was $98.1 million, or 67.6% of total revenue, for the fourth quarter of 2019, compared to $78.7 million, or 65.2% of total revenue, for the fourth quarter of 2018.

Total operating expenses were $87.5 million, or 60.3% of total revenue, for the fourth quarter of 2019, compared to $72.0 million, or 59.6% of total revenue, for the fourth quarter of 2018. R&D expenses were $12.9 million for the fourth quarter of 2019, compared to $10.9 million for the fourth quarter of 2018. SG&A expenses were $74.7 million for the fourth quarter of 2019, compared to $61.2 million for the fourth quarter of 2018.

Operating income was $10.6 million for the fourth quarter of 2019, compared to an operating income of $6.7 million for the fourth quarter of 2018.

As of December 31, 2019, cash and cash equivalents and marketable investments totaled $189.4 million.

Full Year 2019 Financial Results
Total revenue grew to $547.4 million for the year ended December 31, 2019, compared to $444.9 million for 2018, an increase of 23.0%, or 24.2% on a constant currency basis. The United States represented 65% of total revenue and international represented 35% of total revenue for the year ended December 31, 2019. Revenue from sales of neuro products grew to $331.7 million for the year ended December 31, 2019, an increase of 12.7%, or 14.1% on a constant currency basis. Revenue from sales of vascular products grew to $215.7 million for the year ended December 31, 2019, an increase of 43.2%, or 44.0% on a constant currency basis.

Gross profit was $372.0 million, or 68.0% of total revenue, for the year ended December 31, 2019, compared to $292.5 million, or 65.7% of total revenue, for the year ended December 31, 2018.

Total operating expenses for the year ended December 31, 2019 were $324.5 million, or 59.3% of total revenue. This compares to total operating expenses of $293.4 million, or 65.9% of total revenue, for the year ended December 31, 2018, which included a $30.8 million acquired in-process research and development (“IPR&D”) charge in connection with the acquisition of a controlling interest in MVI Health Inc. in the third quarter of 2018. Excluding the IPR&D charge, total non-GAAP operating expenses2 were $262.6 million, or 59.0% of total revenue, for the year ended December 31, 2018. R&D expenses were $51.7 million for the year ended December 31, 2019, compared to $36.2 million for the year ended December 31, 2018. SG&A expenses were $272.7 million for the year ended December 31, 2019, compared to $226.4 million for the year ended December 31, 2018.

1See “Non-GAAP Financial Measures” below for important information about our use of constant currency and other non-GAAP measures.
2See “Non-GAAP Financial Measures” below for important information about our use of non-GAAP measures and further information about our non-GAAP operating expenses and non-GAAP operating income measures.
1

Operating income was $47.5 million for the year ended December 31, 2019. This compares to an operating loss of $0.9 million for the year ended December 31, 2018, including the IPR&D charge. Excluding the IPR&D charge, non-GAAP operating income1 was $30.0 million for the year ended December 31, 2018.

Full Year 2020 Financial Outlook
Penumbra projects total revenue for 2020 to be in the range of $635 million to $645 million, which represents growth of 16% to 18% over last year. This outlook includes the impact of recent reimbursement changes in Japan. Excluding Japan, Penumbra projects revenue growth for 2020 to be above 20%.

Webcast and Conference Call Information
Penumbra, Inc. will host a conference call to discuss financial results for the fourth quarter and year ended December 31, 2019 after market close on Tuesday, February 25, 2020 at 5:00 PM Eastern Time. The conference call can be accessed live over the phone by dialing (833) 227-5837 for domestic callers or (647) 689-4064 for international callers (conference id: 3899277), or the webcast can be accessed on the “Events” section under the “Investors” tab of the Company’s website at: www.penumbrainc.com. The webcast will be available on the Company’s website for two weeks following the completion of the call.

About Penumbra
Penumbra, Inc., headquartered in Alameda, California, is a global healthcare company focused on innovative therapies. Penumbra designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. Penumbra sells its products to hospitals primarily through its direct sales organization in the United States, most of Europe, Canada and Australia, and through distributors in select international markets. The Penumbra logo is a trademark of Penumbra, Inc. For more information, visit www.penumbrainc.com.

1See “Non-GAAP Financial Measures” below for important information about our use of non-GAAP measures and further information information about our non-GAAP operating expenses and non-GAAP operating income measures.
2

Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses the following non-GAAP financial measures in this press release: a) non-GAAP operating expenses and non-GAAP operating income, b) non-GAAP net income and non-GAAP diluted earnings per share (“EPS”), and c) constant currency.

Non-GAAP operating expenses and non-GAAP operating income. The Company defines non-GAAP operating expenses as total operating expenses, excluding the IPR&D charge in connection with the MVI Health Inc. asset acquisition. Non-GAAP operating income is defined as operating income (loss), excluding the same IPR&D charge.

Non-GAAP net income and non-GAAP diluted EPS. The Company defines non-GAAP net income as net income excluding a) the IPR&D charge in connection with the MVI Health Inc. asset acquisition in the third quarter of 2018, b) the one-time effect of the transition tax from the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”) in the first quarter of 2018, and c) the effects of the excess tax benefits associated with share-based compensation arrangements, net of any related valuation allowance. The Company defines non-GAAP diluted EPS as GAAP diluted EPS, excluding the effects of the same items above.

Constant currency. The Company’s constant currency revenue disclosures estimate the impact of changes in foreign currency rates on the translation of the Company’s current period revenue as compared to the applicable comparable period in the prior year. This impact is derived by taking the current local currency revenue and translating it into U.S. dollars based upon the foreign currency exchange rates used to translate the local currency revenue for the applicable comparable period in the prior year, rather than the actual exchange rates in effect during the current period. It does not include any other effect of changes in foreign currency rates on the Company’s results or business.

Full reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the tables below.

Our management believes the non-GAAP financial measures disclosed in this press release are useful to investors in assessing the operating performance of our business and provide meaningful comparisons to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. Specifically, we consider the change in constant currency revenue as a useful metric as it provides an alternative framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. We consider non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted EPS useful metrics as they provide an alternative framework for assessing how our underlying business performed. These metrics exclude the effects of the IPR&D charge in connection with the MVI Health Inc. asset acquisition, and, in the case of non-GAAP net income and non-GAAP diluted EPS, the one-time effect of the transition tax from the Tax Reform Act, as well as the effects of excess tax benefits associated with share-based compensation arrangements, net of any related valuation allowance.

The non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business.

Forward-Looking Statements
Except for historical information, certain statements in this press release are forward-looking in nature and are subject to risks, uncertainties and assumptions about us. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to: failure to sustain or grow profitability or generate positive cash flows; failure to effectively introduce and market new products; delays in product introductions; significant competition; inability to further penetrate our current customer base, expand our user base and increase the frequency of use of our products by our customers; inability to achieve or maintain satisfactory pricing and margins; manufacturing difficulties; permanent write-downs or write-offs of our inventory; product defects or failures; unfavorable outcomes in clinical trials; inability to maintain our culture as we grow; fluctuations in foreign currency exchange rates; potential adverse regulatory actions; and potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2019, which we expect to file with the SEC on or before March 2, 2020. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Any forward-looking statements are based on our current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.

3

Penumbra, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
															
		December 31,	
		2019		2018	
Assets					
Current assets:					
     Cash and cash equivalents		$	72,779 	 		$	67,850 	 	
     Marketable investments		116,610 	 		133,039 	 	
     Accounts receivable, net		105,901 	 		81,896 	 	
     Inventories		152,992 	 		115,741 	 	
     Prepaid expenses and other current assets		14,852 	 		12,200 	 	
          Total current assets		463,134 	 		410,726 	 	
Property and equipment, net		51,812 	 		35,407 	 	
Operating lease right-of-use assets		43,717 	 		— 	 	
Finance lease right-of-use assets		39,924 	 		— 	 	
Intangible assets, net		25,407 	 		27,245 	 	
Goodwill		7,656 	 		7,813 	 	
	
Deferred taxes		31,305 	 		32,940 	 	
Other non-current assets		2,946 	 		875 	 	
          Total assets		$	665,901 	 		$	515,006 	 	
Liabilities and Stockholders’ Equity					
Current liabilities:					
     Accounts payable		$	15,111 	 		$	8,176 	 	
     Accrued liabilities		67,630 	 		57,886 	 	
     Current operating lease liabilities		4,142 	 		— 	 	
     Current finance lease liabilities		4,165 	 		— 	 	
          Total current liabilities		91,048 	 		66,062 	 	
Deferred rent		— 	 		7,586 	 	
Non-current operating lease liabilities		47,242 	 		— 	 	
Non-current finance lease liabilities		26,748 	 		— 	 	
Other non-current liabilities		15,250 	 		18,943 	 	
          Total liabilities		180,288 	 		92,591 	 	
Stockholders’ equity:					
Preferred stock		— 	 		— 	 	
Common stock		35 	 		34 	 	
Additional paid-in capital		430,659 	 		415,084 	 	
Accumulated other comprehensive loss		(2,324)	 		(1,942)	 	
Retained earnings		57,522 	 		9,064 	 	
Total Penumbra, Inc. stockholders’ equity		485,892 	 		422,240 	 	
Non-controlling interest		(279)	 		175 	 	
Total stockholders’ equity		$	485,613 	 		$	422,415 	 	
Total liabilities and stockholders’ equity		$	665,901 	 		$	515,006 	 	

4

Penumbra, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except share and per share amounts)
																											
		Three Months Ended December 31, 	 		Year Ended December 31, 	 	
		2019		2018		2019		2018	
Revenue		$	145,263 	 		$	120,793 	 		$	547,405 	 		$	444,938 	 	
Cost of revenue		47,135 	 		42,081 	 		175,441 	 		152,405 	 	
     Gross profit		98,128 	 		78,712 	 		371,964 	 		292,533 	 	
Operating expenses:									
     Research and development		12,861 	 		10,867 	 		51,723 	 		36,165 	 	
     Sales, general and administrative		74,688 	 		61,176 	 		272,733 	 		226,385 	 	
     Acquired in-process research and development		— 	 		— 	 		— 	 		30,835 	 	
          Total operating expenses		87,549 	 		72,043 	 		324,456 	 		293,385 	 	
Income (loss) from operations		10,579 	 		6,669 	 		47,508 	 		(852)	 	
Interest income, net		578 	 		724 	 		2,854 	 		2,964 	 	
Other income (expense), net		592 	 		(44)	 		(227)	 		(504)	 	
Income before income taxes and equity in losses of unconsolidated investee		11,749 	 		7,349 	 		50,135 	 		1,608 	 	
Provision for (benefit from) income taxes		2,448 	 		885 	 		3,131 	 		(4,403)	 	
Income before equity in losses of unconsolidated investee		9,301 	 		6,464 	 		47,004 	 		6,011 	 	
Equity in losses of unconsolidated investee		— 	 		— 	 		— 	 		(3,101)	 	
Consolidated net income		$	9,301 	 		$	6,464 	 		$	47,004 	 		$	2,910 	 	
Net loss attributable to non-controlling interest		$	(388)	 		$	(195)	 		$	(1,454)	 		$	(3,691)	 	
Net income attributable to Penumbra, Inc.		$	9,689 	 		$	6,659 	 		$	48,458 	 		$	6,601 	 	
Net income attributable to Penumbra, Inc. per share:									
Basic		$	0.28 	 		$	0.19 	 		$	1.39 	 		$	0.19 	 	
Diluted		$	0.27 	 		$	0.18 	 		$	1.34 	 		$	0.18 	 	
Weighted average shares outstanding:									
Basic		34,955,043 	 		34,378,415 	 		34,750,706 	 		34,138,176 	 	
Diluted		36,312,471 	 		36,150,450 	 		36,265,999 	 		36,086,821 	 	

5

Penumbra, Inc.
Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1
(unaudited)
(in thousands)
																																													
		Three Months Ended December 31,		Reported Change		 FX Impact		Constant Currency Change	
		2019		2018		$		%		 $		$		%	
United States		$	96,065 	 		$	80,645 	 		$	15,420 	 		19.1 	%		$	— 	 		$	15,420 	 		19.1 	%	
International		49,198 	 		40,148 	 		9,050 	 		22.5 	%		636 	 		9,686 	 		24.1 	%	
     Total		$	145,263 	 		$	120,793 	 		$	24,470 	 		20.3 	%		$	636 	 		$	25,106 	 		20.8 	%	
Penumbra, Inc.
Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1
(unaudited)
(in thousands)
																																													
		Three Months Ended December 31,		Reported Change		 FX Impact		Constant Currency Change	
		2019		2018		$		%		 $		$		%	
Neuro		$	85,420 	 		$	74,015 	 		$	11,405 	 		15.4 	%		$	542 	 		$	11,947 	 		16.1 	%	
Vascular		59,843 	 		46,778 	 		13,065 	 		27.9 	%		94 	 		13,159 	 		28.1 	%	
     Total		$	145,263 	 		$	120,793 	 		$	24,470 	 		20.3 	%		$	636 	 		$	25,106 	 		20.8 	%	

Penumbra, Inc.
Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1
(unaudited)
(in thousands)
																																													
		Year Ended December 31,		Reported Change		 FX Impact		Constant Currency Change	
		2019		2018		$		%		 $		$		%	
United States		$	355,222 	 		$	290,716 	 		$	64,506 	 		22.2 	%		$	— 	 		$	64,506 	 		22.2 	%	
International		192,183 	 		154,222 	 		37,961 	 		24.6 	%		5,197 	 		43,158 	 		28.0 	%	
     Total		$	547,405 	 		$	444,938 	 		$	102,467 	 		23.0 	%		$	5,197 	 		$	107,664 	 		24.2 	%	
Penumbra, Inc.
Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1
(unaudited)
(in thousands)
																																													
		Year Ended December 31,		Reported Change		 FX Impact		Constant Currency Change	
		2019		2018		$		%		 $		$		%	
Neuro		$	331,685 	 		$	294,333 	 		$	37,352 	 		12.7 	%		$	4,121 	 		$	41,473 	 		14.1 	%	
Vascular		215,720 	 		150,605 	 		65,115 	 		43.2 	%		1,076 	 		66,191 	 		44.0 	%	
     Total		$	547,405 	 		$	444,938 	 		$	102,467 	 		23.0 	%		$	5,197 	 		$	107,664 	 		24.2 	%	

	
1See “Non-GAAP Financial Measures” above for important information about our use of this non-GAAP measure and further information about our calculation of constant currency results.

6

Penumbra, Inc.
Reconciliation of GAAP Operating Expenses and Income (Loss) from Operations to Non-GAAP Operating Expenses and Non-GAAP Operating Income1
(unaudited)
(in thousands)
																											
		Three Months Ended December 31,		Year Ended December 31,	
		2019		2018		2019		2018	
GAAP total operating expenses		$	87,549 	 		$	72,043 	 		$	324,456 	 		$	293,385 	 	
GAAP operating expenses includes the effect of the following items:									
	
IPR&D charge in connection with an asset acquisition2		— 	 		— 	 		— 	 		30,835 	 	
Non-GAAP operating expenses		$	87,549 	 		$	72,043 	 		$	324,456 	 		$	262,550 	 	
									
GAAP income (loss) from operations		$	10,579 	 		$	6,669 	 		$	47,508 	 		$	(852)	 	
GAAP income (loss) from operations includes the effect of the following items:									
IPR&D charge in connection with an asset acquisition2		— 	 		— 	 		— 	 		30,835 	 	
Non-GAAP operating income		$	10,579 	 		$	6,669 	 		$	47,508 	 		$	29,983 	 	

Penumbra, Inc.
Reconciliation of GAAP Net Income and Diluted EPS to Non-GAAP Net Income and Non-GAAP Diluted EPS1
(unaudited)
(in thousands, except per share amounts)
																																																			
		Three Months Ended
December 31, 2019		Three Months Ended
December 31, 2018		Year Ended
December 31, 2019		Year Ended
December 31, 2018	
		Net income (loss)		Diluted EPS		Net income (loss)		Diluted EPS		Net income (loss)		Diluted EPS		Net income (loss)		Diluted EPS	
GAAP measures		$	9,689 	 		$	0.27 	 		$	6,659 	 		$	0.18 	 		$	48,458 	 		$	1.34 	 		$	6,601 	 		$	0.18 	 	
Items reconciling GAAP net income and EPS to non-GAAP net income and EPS:																	
	
Acquired IPR&D in connection with an asset acquisition2		— 	 		— 	 		— 	 		— 	 		— 	 		— 	 		27,393 	 		0.76 	 	
Effects of the transition tax and the rate change on the net deferred tax assets resulting from the Tax Reform Act3		— 	 		— 	 		(13)	 		— 	 		— 	 		— 	 		75 	 		— 	 	
Excess tax benefits related to stock compensation awards4		(1,596)	 		(0.05)	 		(1,965)	 		(0.05)	 		(12,870)	 		(0.36)	 		(15,575)	 		(0.43)	 	
Effect of dilutive shares on EPS		— 	 		— 	 		— 	 		— 	 		— 	 		— 	 		— 	 		— 	 	
Non-GAAP measures		$	8,093 	 		$	0.22 	 		$	4,681 	 		$	0.13 	 		$	35,588 	 		$	0.98 	 		$	18,494 	 		$	0.51 	 	

	

	

			
	
1 See “Non-GAAP Financial Measures” above for important information about our use of non-GAAP measures and further information about our non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income (loss) and non-GAAP diluted EPS measures.
2 On August 31, 2018, the Company acquired a controlling interest in MVI Health Inc. which was accounted for as an asset acquisition. In connection with the transaction, the Company recorded a $30.8 million IPR&D charge during year ended December 31, 2018, in the consolidated statements of operations related to the acquired technology under development from MVI Health Inc. Of the total IPR&D charge, $27.4 million was attributable to the net loss of Penumbra, Inc in the third quarter of 2018. There was no effect on the benefit from income taxes for the year ended December 31, 2018 related to the IPR&D charge.
3 On December 22, 2017, the Tax Reform Act was enacted into law. This new tax law, among other changes, reduces the Company’s U.S. federal statutory corporate income tax rate from 34% to 21% effective January 1, 2018. During the first quarter of 2018, the Company recorded a provisional tax charge for the one-time transition tax on the undistributed earnings of its foreign subsidiaries. During the three months and year ended December 31, 2018, the Company completed its accounting for the tax effect of the transition tax under ASC 740 and adjusted the previously recorded provisional tax charge. The adjustment was deemed immaterial to the consolidated financial statements
4 In accordance with Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting, all excess tax benefits related to share-based compensation is recognized as an income tax benefit, instead of in stockholders’ equity.

Investor Relations
Penumbra, Inc.
510-995-2461
investors@penumbrainc.com
Source: Penumbra, Inc.

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