NuVasive, Inc. (NuVasive), a orthopedic devices company, has reported revenues of $250.1 million for the full year of 2008, compared with the revenues of $154.2 million in the previous year-end. It also reported net loss of $27.5 million, or $0.77 per share, for the full year of 2008, compared with the net loss of $11.2 million, or $0.32 per share, in the previous year-end.
NuVasive reports fourth quarter and full year 2008 financial results
Fourth Quarter Revenue of $74.6 Million –
2008 Revenue of $250.1 Million –
Provides 2009 Guidance –
Fourth Quarter and Full Year 2008 Highlights:
Fourth quarter total revenue of $74.6 million; up 58.9% from the fourth quarter 2007
Osteocel revenue for the second half 2008 of $10 million; exceeds prior guidance of $9 million
Gross margin of 82.0% for the fourth quarter and 82.3% for the full year
Full year 2008 earnings per share of $0.10 excluding in-process research and development costs and other adjustments; exceeds prior guidance of $0.07 – $0.09
NuVasive reported fourth quarter revenue of $74.6 million, including $5.7 million of Osteocel revenue, up 58.9% over the $46.9 million for the fourth quarter 2007 and an 11.5% increase over the $66.9 million for the third quarter 2008.
Gross profit for the fourth quarter 2008 was $61.1 million and gross margin was 82.0%, against a gross profit of $38.9 million and a gross margin of 82.9% for the fourth quarter 2007. For third quarter 2008, gross profit was $54.7 million and gross margin was 81.8%. Gross profit for the full year 2008 was $205.8 million and gross margin was 82.3%, compared to a gross profit of $126.9 million and gross margin of 82.3% for the full year 2007. Gross margin on Osteocel revenue was 44.5% for the fourth quarter 2008 and 40.7% for the full year 2008.
Total operating expenses for the fourth quarter 2008 were $57.0 million against $41.2 million in the fourth quarter 2007 and $77.7 million in the third quarter 2008. Full year 2008 operating expenses were $233.6 million against $144.2 million reported for the full year 2007. The higher operating expenses in 2008 resulted primarily from additional costs directly associated with higher revenue, infrastructure expansion, and in-process research and development.
On a non-GAAP basis, the company reported net income of $12.5 million, or $ 0.33 per share, for the fourth quarter 2008, and net income of $27.7 million, or $0.74 per share, for the full year 2008. The non-GAAP earnings per share calculations exclude for the fourth quarter and full year, respectively, (i) stock based compensation of $5.2 million and $20.9 million; (ii) charges related to transitional support costs for the company’s ERP system of $1.4 million and $4.0 million; (iii) amortization of acquired intangible assets of $1.2 million and $3.0 million; and (iv) intellectual property litigation expenses of $1.0 million and $1.5 million. The non-GAAP earnings per share calculations also exclude for the full year: (i) charges for in-process research and development costs of $20.9 million; and (ii) a one-time leasehold charge of $4.8 million related to vacating the company’s previous headquarters.
Cash, cash equivalents and short and long-term marketable securities were $223.4 million at December 31, 2008.
On January 18, 2009, the company completed an investment in Progentix Orthobiology BV. Through this investment, Progentix will continue development work on a synthetic bone substitute that has the potential to accelerate bone healing through a novel micro-structure created by a proprietary manufacturing process.
Alex Lukianov, chairman and chief executive officer, said, “We are very pleased with the company’s continued revenue growth in 2008, in conjunction with expanding profitability. We also successfully launched several new products which strengthened our position as the leader in Maximum Access Surgery through our innovative lateral approach.”
Lukianov continued, “The Osteocel and Progentix transactions strongly position us to compete in the $1.5 billion biologics market as we seek to grow the product line to over $100 million in the next few years. Despite uncertain economic conditions, we see 2009 as an opportunity for NuVasive to continue taking market share with the speed and creativity that we have become known for. To that end, we plan to aggressively invest in the growth of our business in 2009, including the initiation of our XLTDR clinical study, increased scientific and marketing investments in our biologics platform, continued international expansion, and the launch of fifteen new products and line extensions. We look forward to capitalizing on current market conditions to accelerate our move into the top tier of global spine companies.”