NuVasive, Inc. (NuVasive), an orthopedic devices company, has reported revenues of $80 million for the first quarter of 2009, up 56.3%, compared with the revenues of $51.2 million in the year-ago quarter. It also reported net loss of $4.3 million, or $0.12 per share, for the first quarter of 2009, compared with the net loss of $7.6 million, or $0.22 per share, in the year-ago quarter.
For the full year 2009, NuVasive raised its full year 2009 revenue outlook to a range of $355 million to $360 million from the prior forecast range of $345 million to $350 million. NuVasive also said it now expects a loss in the range of $0.07 – $0.05 per share, compared to its previous guidance of $0.14 – $0.12 per share. Non-GAAP earnings are now expected to be in a range of $0.94 – $0.93 per share, up from the prior range of $0.83 to $0.85 per share.
First Quarter 2009 Highlights:
Gross margin of 81.5% compared to 82.2% for first quarter 2008
GAAP loss per share was $(0.12); favorable to prior guidance of $(0.27) – $(0.25)
First quarter loss per share was $(0.02), excluding intellectual property litigation and acquisition related costs; favorable to prior guidance of $(0.21) – $(0.19)
NuVasive reported first quarter gross profit of $65.2 million and gross margin was 81.5%, compared to a gross profit of $42.1 million and a gross margin of 82.2% for the first quarter 2008. For fourth quarter 2008, gross profit was $61.1 million and gross margin was 82.0%.
Total operating expenses for the first quarter 2009 were $68.7 million compared with $50.5 million in the first quarter 2008 and $57.0 million in the fourth quarter 2008. Operating expenses include $1.9 million for Progentix and Cervitech acquisition costs and $1.6 million related to intellectual property litigation.
Cash, cash equivalents and short and long-term marketable securities were $203.5 million at March 31, 2009.
Alex Lukianov, chairman and chief executive officer, said, “We are exceptionally pleased with our financial performance in the first quarter of 2009, specifically our increased profitability, which shows how NuVasive’s continued revenue growth translates to earnings growth. We believe this dynamic is sustainable and we expect continued profitability improvements as the company grows. We have the strategy, the talent, and the infrastructure in place to drive toward our goal of being the #4 spine company in the world and we will get there by adhering to our core values of Absolute Responsiveness(R), outstanding customer service, and Cheetah Speed.”
Lukianov continued, “Today, we are excited to announce the acquisition of Cervitech, which gives NuVasive the potential of rapid entry into the high growth segment of cervical disc replacement with the PCM investigational device. The PCM IDE clinical study is fully enrolled with two year follow-up data complete later this year. With that timing, we anticipate submission for FDA approval in the first quarter of 2010, which is significantly ahead of our current motion preservation R&D pipeline. The acquisition further strengthens our cervical product offering. We expect product revenue of $100 million annually within three years of U.S. commercialization.”