Becker's Spine Review

44 SPINE DEVICE & INNOVATION K2M's Q2 Revenue Up 18.7% to $56.4M: 10 Things to Know By Laura Dyrda K 2M reported 18.7 percent revenue increase in the sec- ond quarter of 2015. Here are 10 key notes on the company's financial report: 1. K2M's revenue jumped 18.7 per- cent to $56.4 million for the second quarter. International revenue was up 4.5 percent to $14.9 million while domestic revenue was up 24.7 percent to $41.4 million. 2. By segment, the company's domes- tic revenue growth was: • U.S. complex spine growth: 23.6 percent • U.S. minimally invasive surgery growth: 34.5 percent • U.S. degenerative growth: 22.3 percent 3. e revenue increase was due to greater sales volume from new sur- geons using the company's technology in the United States and existing cus- tomers upgrading to newer product offerings. ere was also growth in the international distributor markets and a domestic stocking order. 4. For the six months end, the United States revenue was up 21.6 percent to $76 million and international revenue was up 12.8 percent to $30 million. Total revenue grew 19 percent to $106.7 million. 5. For the first half of the year, the product line revenue was: • U.S. Complex Spine growth: 21.6 percent to $31.3 million • U.S. Minimally Invasive growth: 28 percent to $12.7 million • U.S. degenerative growth: 19.1 percent to $32.5 million 6. Loss from operations in the second quarter was $8.6 million, compared to a $12.8 million loss last year. 7. Operating expenses for the second quarter were up to $46.4 million due primarily to increased sales commis- sions as a result of increased sales volume and by higher employee years. 8. Gross profit for the quarter was up 20 percent to $37.7 million, or 67 percent of sales. e medical device excise tax was $0.7 million, or 1.2 percent of the total company sales this year. 9. e company expects total con- stant currency revenue growth of 15 percent to 17 percent year-over-year, hitting $214 million to $218 million. 10. Total net loss for the full year is expected to hit $34 million to $38 million, lower than $59.6 million in 2014. n J ohnson & Johnson's orthopedics business reported $2.3 billion in sales for the second quarter. Here are five key notes: 1. Total sales for the orthopedics line were down 5.6 percent over the same period last year. 2. United States sales were up 2.1 percent, hit- ting $1.3 billion last quarter. 3. International sales took a huge dip last quarter — dropping 14.1 percent. International orthope- dics sales were $1 billion. 4. At the six months in, the orthopedics line re- ported $4.6 billion worldwide. That's a 4.7 per- cent drop from the first half of last year. 5. In the first six months of the year, international sales were down 12 percent and United States sales were up 1.7 percent for the orthopedics line. n J&J Orthopedics Sales Drop 5.6% in Q2: 5 Key Notes By Laura Dyrda

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