Issue link: https://beckershealthcare.uberflip.com/i/571000
46 SPINE DEVICE & INNOVATION Alphatec's Net Revenue Drops 12.3%: 8 Key Concepts By Laura Dyrda A lphatec 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 reve- nue 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 valua- tion of Japanese Yen and Euro against the U.S. dollar. 2. e 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. e 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 geo- graphic mix. 4. e gross margin declined 8.9 percentage points compared to the same period last year due to unfavor- able variation in regional and product mix. e international margins are typically lower, along with write-offs related to manufacturing and product lifecycle management. 5. e 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. e total operating expenses were $30.4 million, a decrease from the same period last year. Alphatec re- ported lower commission expenses as a result of lower U.S. sales volume and savings in marketing, research and development and G&A functions. 7. e company expects to see con- stant currency revenue from the full year hit -2.5 percent to 1.3 percent compared with the same period last year. is represents revenue of $202 million to $210 million. 8. Alphatec expects 2015 EBITDA to reach $22 million to $26 million. "e first half of this year we have been making significant chang- es 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. n SeaSpine Q2 Revenue Down 6% in 1st Report as Independent Company: 6 Key Notes By Laura Dyrda S eaSpine released financial results for the company's first quarter as a separate entity from Integra LifeSciences. Here are six things to know from the report: 1. The company's total revenue for the second quarter is expected to hit $33.5 million, down 6 percent for the same period last year. 2. Orthobiologics revenue is projected to increase 1 percent to $17 million. 3. The spinal fusion hardware revenue will be down 13 percent to $16.5 million for the second quarter. 4. Full-year revenue is expected to reach $133 million to $139 million, flat or down 4 percent compared with the same period last year. This is unchanged from the previous guidance Integra LifeSciences projected. 5. SeaSpine became an independent company July 1 and is investing in innovation and growth initiatives. The orthobiologics platform is the leading platform. 6. President and CEO Keith Valentine reported the company has a robust research and development pipeline that includes spinal fusion hardware products recently launched. The company expects to launch additional products in the second half of this year. n