Alphatec Holdings reported second quarter financial results for Alphatec Spine, with highlights from United States and international revenue as well as product launches during the quarter and an outlook for the future.
Here are five things to know about Alphatec Spine's financial report:
1. Consolidated net revenues reached $53.2 million in the second quarter, a 4.2 percent growth over the same period last year. Revenue in the United States reached $34.5 million, a 6.2 percent growth and international revenue grew 1 percent to $18.6 million. Excluding revenues from the cessation of sales in France, the international revenues grew 9 percent.
2. Sales from the company's less invasive products increased 16 percent over the second quarter of 2013. A strong uptake of the Illico MIS across all major geographies drove the less invasive product growth. Biologics also grew substantially, up 25 percent over the same period last year attributable to Alphatec's broad biologics portfolio.
3. The company successfully completed the beta launch of a new spinal fixation system — Arsenal — and reported early feedback from surgeons has been "extremely positive." "Our initial patient cases have gone very well and interest in the marketplace is growing," said Alpahtec Spine President and CEO Jim Corbett. "We took positive steps forward this quarter towards our goal of producing profitable growth and look forward to continued improvement of our business."
4. The company reported GAAP net loss at $2.9 million for the second quarter, down considerably from the $4.7 million reported during the second quarter of 2013. The company reported cash and cash equivalents at $19 million, compared to $23.8 million in the previous quarter.
5. Total operating expenses were down 2 percent in the second quarter to $34.3 million. The company increased research and development spend, primarily due to Arsenal's beta launch, but that was offset by general and administrative expense improvements.