K2M reported $258 million in 2017 revenue, up 9 percent year over year. However, the company also reported $37.1 million in net loss.
Here are five key thoughts from CEO Eric Major in the company's fourth quarter and full year 2017 earnings call, as reported in a transcript from Seeking Alpha.
On the co-marketing agreement with Brainlab and distribution agreement with Japan Medicalnext: "We look forward to the partnership helping K2M increase its share of the estimated $350 million spine market in Japan. Brainlab's spinal navigation provides image-guided, open navigation platforms for spine surgery…The two companies will collaborate in the commercial release of future navigated K2M spinal systems, which would be compatible with Brainlab."
What hospitals are looking for: "As we are looking at different contracts that hospitals are buying systems that have navigation and imaging as part of that, we feel we have really a state-of-the-art partner with Brainlab; 5,300 installed units around the world, which really gives us an opportunity to go to every one of those locations."
Entrance into robotics: "We want to continue to lead the market with our implant growth. And then the imaging and navigation in the future of robotics, that's really Brainlab's expertise, which is why we think this relationship is very unique."
Health of the spine market: "We think the market is relatively healthy. We think that spine cases are not going away. And when you talk to the surgeons, I think they'll tell you that in some instances, maybe around Q3 time, that there may have been some headwind, but if you look at our Q4 experience and so forth going into the year, we feel confident about the market and the overall health of the spine market."
2018 growth: "Outside the United States, we are encouraged about the long term growth outlook in both Australia and Japan following the progress we have made in those countries in 2017…We expect to show improving profitability through a combination of revenue growth and efficiencies in sales and operations and reduce our net loss for 2018."