Although, NuVasive reported first quarter 2018 revenues increased 4.6 percent year-over-year to $260.5 million, the company still reported a net loss.
Here are five things to know.
1. NuVasive reported $27.1 million net loss for the first quarter of 2018, compared to net income of $12.4 million over the same period last year. The net loss was primarily due to an increase in litigation liability totaling $29 million related to an ongoing lawsuit with a former sales agent.
2. The company was able to obtain a favorable tax ruling on its Tennessee-based operations, modifying its local operations to obtain the tax exemption for property, sales and use taxes specific to the state. NuVasive's primary distribution facility is in Memphis, Tenn.
3. NuVasive reiterated full-year 2018 guidance assuming a tax benefit from the U.S. tax reform, suspension of the medical device tax and final acquisition of SafePassage. The company expects full year revenue to hit around $1.1 billion, a 4.7 percent to 5.7 percent increase year over year.
4. The company expects to drive at least 100 basis points in non-GAAP operating margin expansion and an adjusted EBITDA of around $295 million to $305 million.
5. NuVasive's international business reported 20 percent year-over-year growth in the first quarter, on a constant currency basis.
"As we look forward to the remainder of the year, we expect our continued innovation—including the expansion of our lateral procedure solutions with the integration of Lateral Single-Position Surgery, further build out of our Advanced Materials Science portfolio and the initial launch of our Surgical Intelligence platform—to drive further differentiation of NuVasive technologies with surgeon partners," said Gregory T. Lucier, chairman and CEO of NuVAsive. "We also anticipate our Ohio manufacturing facility production ramping u in the second half of the year and we begin to realize the 400 basis point improvement in gross margins through this in-sourcing manufacturing effort."