10 Spine, Orthopedic Device Company Financial Reports

Alphatec Spine's first quarter consolidated net revenues were $49.2 million, slightly lower than the same period last year. The company reported $6.6 million in net losses, around $4 million more than last year. Net revenue in the United States was down 3 percent compared to the same period last year, but excluding revenue contributions from PureGen the first quarter U.S. net revenues were relatively flat. United States hospital implant volume came in strong, but was offset by continued industry pricing. International net revenues were down 1.5 percent to $17.1 million. International revenue was impacted by a decline in the French revenue after the company exited the market last year. Gross profits reached $33.3 million, slightly higher than the same period last year.

DePuy Synthes, a Johnson & Johnson company, reported a 3 percent decline in United States total spine sales and 1 percent decline in worldwide spine sales. The trauma business had a 10 percent increase in the United States and 6 percent increase worldwide. Hips and knees had a 4 percent and 2 percent growth in the United States respectively; they experienced a 1 percent and 3 percent growth internationally.

Globus Medical reported worldwide sales at $114.2 million and first quarter net income at $21.1 million, slightly above the same period last year. First quarter net sales were up 8.8 percent and United States sales grew 5.6 percent. International sales represented 10.9 percent of the company's total sales. The company launched five new products in the first quarter, and Chairman and CEO David Paul said the company has the "momentum to maintain and expand [its] industry leading product portfolio."

Mazor Robotics fourth quarter revenue was $5.7 million, up from the previous year. The company's revenue at the year-end Dec. 31, 2013, was $19.9 million, up from $12.17 million in 2012. However the company reported a $20.52 million net loss for the year 2013, significantly higher than in 2012. The company sold 23 systems in 2013, bringing the total systems in the United States to 34 and worldwide systems to 63. The company plans to continue to increase investments in sales force expansion, marketing activities, research and development initiatives and additional clinical data development.

Medtronic reported third quarter fiscal year 2013 revenue at $4.1 billion, slightly above the $4 billion reported for the same period of the previous year. Third quarter net earnings decreased 23 percent to $762 million. International revenue was up 4 percent to $1.8 billion. The company's spine revenue declined 1 percent to $744 million. Core spine revenue was flat at $631 million. Medtronic reported the global and United States markets "continue to show sights of stability." BMP revenue declined 1 percent on a constant currency basis, as "the business is seeing signs of sequential stability in underlying demand and faced a favorable comparison due to a supply constraint in the previous year."

NuVasive reported $18.3 million net loss in the first quarter of 2014. Gross profit reached $134.2 million, up from the same period last year, and the company's first quarter revenue was $177.5 million. According to company Chairman and CEO Alex Lukianov, the first quarter results were solidly in line with their expectations and keep the company on track to achieve full-year guidance. The company is evolving its organization to maintain start-up mentality and lead spinal innovation.

Smith & Nephew reported first quarter 2014 revenue at $1 billion, a 1 percent increase from the same quarter last year on an underlying basis. The company reported 9 percent international revenue growth but a 2 percent decline in U.S. sales. The company's knee implant franchise revenue was flat due to a slowdown in the market growth rate. The hip implant franchise revenue was also flat, and sports medicine grew 5 percent. Trauma and extremities were down 1 percent. The company announced its intention to acquire ArthroCare in February for around $1.7 billion, which will significantly strengthen the company's portfolio.

SpineGuard reported a 19 percent increase in revenue and 20 percent increase in gross margin in 2013. The company sold 3,142 PediGuard units in the United States and 1,341 in Europe. During 2013, the company received FDA clearance for the X Classic and XS Curved PediGuard versions. Additional regulatory clearances were achieved in Japan, Mexico and Russia. The company added 20 agencies in the United States — bringing their total to 71 — with others across the world. There are 19 teaching institutions in the United States that adopted PediGuard in their curriculum, meaning 20 percent of spine surgery teaching institutions use it. The company also reported four prospective randomized studies examining PediGuard were conducted in 2013.

Stryker reported first quarter net earnings at $70 million, down from the $304 million during the first quarter of 2013. The company reported gross profit of $1.53 billion in the first quarter, and the nanotechnology and spine business saw a net sales increase to $42 million. The net sales growth was attributed to an increased unit volume and changes in product mix as well as acquisitions.

Zimmer reported 2014 first quarter net sales as $1.1 billion, a 2 percent increase over the same period last year. Net sales in the Americas increased 1 percent to $638 million. The company's spine business also increased 1 percent to $48 million, while the trauma business declined 3 percent to $79 million. The company announced recently that it would combine with Biomet, acquiring the device company for approximately $13.35 billion. In the financial report, the company reaffirmed its full year revenue and updated earnings guidance for 2014.

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