Revenue jumped 16.2 percent to $250 million in the first quarter (ended March 31), or 16 percent on a constant currency basis. The company reported GAAP (Generally Accepted Accounting Principles) operating profit margin of 9.3 percent and a non-GAAP operating profit margin of 14.1 percent.
"NuVasive is off to a solid start to the year, with our International business exceeding our expectations, and we saw momentum building in our U.S. business as we exited the quarter," said Gregory T. Lucier, chairman and CEO of NuVasive. "We are on track to deliver non–GAAP operating profit margin expansion of at least 100 basis points in 2017, reflecting our continued focus on operational efficiencies and the ramp up of our in-house manufacturing facility. Coupled with several innovative product and systems launches planned for 2017, including LessRay designed for radiation reduction, RELINE Trauma system, expandable cages and UNYTE system for complex fractures, we anticipate strong revenue acceleration for the balance of the year."
The company also announced it amended its existing revolving line of credit to expand the facility from $150 million to $500 million. The credit facility amendment demonstrates NuVasive's opportunistic approach to its capital structure, and provides for a five-year term at reasonable borrowing rates. The company expects the expanded facility to allow greater flexibility in planning for the maturity of its convertible notes due July 2017, and support future investment in organic and inorganic growth initiatives.
For the first quarter 2017, both GAAP and non-GAAP gross profit was $188.3 million, and both GAAP and non-GAAP gross margin was 75.3 percent. These results compared to GAAP and non-GAAP gross profit of $160.9 million and $165.8 million, respectively, and GAAP and non-GAAP gross margin of 74.8 percent and 77.1 percent, respectively, for the first quarter 2016. The lower gross margin profile year-over-year is primarily driven by the expense profile of the Biotronic NeuroNetwork business acquired in July 2016. Total GAAP and non-GAAP operating expenses were $165 million and $152.9 million, respectively, for the first quarter of 2017. These results compared to GAAP and non-GAAP operating expenses of $148.6 million and $135.5 million, respectively, for the first quarter of 2016.
NuVasive reported a GAAP net income of $12.8 million, or 22 cents per share, for the first quarter 2017 compared to a GAAP net loss of $3.4 million, or 7 cents per share, for the first quarter 2016. On a non-GAAP basis, the company reported net income of $20 million, or 38 cents per share, for the first quarter 2017 compared to net income of $17.2 million, or 34 cents per share, for the first quarter 2016.
Cash, cash equivalents and short and long-term marketable securities were approximately $134 million at March 31.
Based in San Diego, Calif., NuVasive develops minimally invasive, procedurally-integrated spine solutions. The company's highly differentiated, procedurally-integrated solutions include access instruments, implantable hardware and software systems for surgical planning and reconciliation technology that centers on achieving the global alignment of the spine. With $962 million in revenues (2016), NuVasive has an approximate 2,300 person workforce in more than 40 countries around the world.