Exactech released first quarter financial results, with a net income decrease over the same period in 2014.
Here are 10 key facts:
1. First quarter net income was down 2 percent to $4.1 million.
2. Revenue decreased 3 percent in the first quarter, reaching $61.4 million.
3. A weakened Euro and Japanese Yen relative to the United States dollar had a negative impact on the company's financial report.
4. The revenue break down for the different business lines was:
• Extremity implant: 7 percent increase to $31.1 million
• Knee implant: 10 percent decrease to $18.4 million
• Hip implant: 1 percent increase to $11 million
• Biologic and spine: 12 percent decrease to $5.1 million
• Other revenue: 10 percent decrease to $5.8 million
5. Gross margins decreased 1 percent to 70 percent for the first quarter.
6. Total quarterly expenses were down 4 percent to $36.7 million and as a percentage of total sales were 60 percent.
7. Research and development expenses in the first quarter were up 8 percent to $4.6 million as the company continues investment in a new product pipeline and integrating the Blue Ortho acquisition.
8. The company expects 2015 revenue to reach $248 million to $254 million.
9. The second quarter is expected to bring in $61 million to $63 million.
10. General and administrative expenses increased 1 percent in the first quarter.
"At the current rates we are expecting foreign currency challenges in the second quarter," said CEO and President David Petty. "Sales were softer than planned in part resulting from sales organization transition and improvement activities that we expect will begin delivering positive results in the second half of the year. Major product development projects for revision hip, knee and shoulder systems remain on track and we plan to be doing surgeries with all three revision systems in the second half of this year as well."