Alphatec Holdings, the parent company of Alphatec Spine, reported revenue was down 12.3 percent in the second quarter.
Here are eight things to know about the financial report:
1. Alphatec's consolidated net revenue dropped 12.3 percent compared to the same quarter last year, hitting $46.6 million. Consolidated revenues were impacted by $3.6 million in the second quarter due to declined valuation of Japanese Yen and Euro against the U.S. dollar.
2. The net revenues in the United States were down 21.1 percent, hitting $27.2 million for the second quarter. International revenues were up 4 percent to $19.4 million.
3. The gross profit declined 23.8 percent in the second quarter, hitting $27.5 million, primarily due to lower U.S. sales volume, foreign currency translation effects and global geographic mix.
4. The gross margin declined 8.9 percentage points compared to the same period last year due to unfavorable variation in regional and product mix. The international margins are typically lower, along with write-offs related to manufacturing and product lifecycle management.
5. The company reported GAAP net loss for the quarter at $3.9 million, or $0.04 per share, up from last year when then net loss was $2.9 million.
6. The total operating expenses were $30.4 million, a decrease from the same period last year. Alphatec reported lower commission expenses as a result of lower U.S. sales volume and savings in marketing, research and development and G&A functions.
7. The company expects to see constant currency revenue from the full year hit -2.5 percent to 1.3 percent compared with the same period last year. This represents revenue of $202 million to $210 million.
8. Orthofix expects 2015 EBITDA to reach $22 million to $26 million.
"The first half of this year we have been making significant changes to our business and investing in transforming our commercial model, which we believe will position us for a stronger second half of 2015 and 2016," said CFO Mike O'Neill.