NuVasive Sales Rise 11.3 Percent in Q1

NuVasive Inc. reported first-quarter revenue of $177.5 million, an 11.3 percent increase compared with the $159.5 million the company generated in the same period last year. Piper Jaffray analyst Matt Miksic said the rise shows the company’s aptitude for “sustainable execution and share gains.”

Overseas sales skyrocketed 34 percent to $21 million. Chairman/CEOAlex Lukianov attributed the robust performance overseas to increased physician training in Japan (the world’s second-largest spine market) and improved international adoption rates. He linked the company’s overall growth to new product launches and productivity gains from new sales reps.

U.S. lumbar/cervical sales rose 9 percent to $119.4 million, while monitoring device revenue jumped 11 percent to $11 million, according to the company’s latest earnings statement. U.S. biologics sales swelled 9 percent to $26.2 million. Gross profit for the first quarter 2014 was $134.2 million and gross margin was 75.6 percent, compared with a gross profit of $120.4 million and a gross margin of 75.5 percent in the first quarter 2013.

“Results in the first quarter of 2014 were solidly in line with our expectations, and place us on track to achieve full year guidance by continuing to execute our share-taking strategy. While staying true to NuVasive’s core philosophy of driving innovation to improve spine patient outcomes, we are evolving our organization to maintain a start-up mentality and to continue to lead spine innovation as a much larger, and increasingly profitable, global organization,”Lukianov said.

Total operating expenses for Q1 2014 were $161.6 million compared with $114.0 million in the same period last year. The higher operating costs for the first quarter resulted primarily from the recognition of a litigation liability and a facility abandonment charge, as well as from spending to support international infrastructure expansion.

On a GAAP basis, NuVasive reported a net loss of $18.3 million, or 40 cents per share.

On a non-GAAP basis, the company reported net income of $14.3 million, or 29 cents per share, for Q1 2014. The Non-GAAP earnings per share calculations exclude the following amounts pre-tax: $7.8 million in non-cash stock-based compensation; $1.3 million for intellectual property litigation; $4 million amortization of intangible assets; a $6.4 million leasehold termination charge; one-time and acquisition related items of $1.2 million; non-cash interest expense on convertible notes of $3.6 million; and a $30 million litigation liability.

During a conference call with market analysts, Lukianov said he expects the company to generate $725 million in revenue this year.

Based in San Diego, Calif., NuVasive develops products for minimally disruptive surgical treatments for the spine.