SAN DIEGO, Feb. 19 /PRNewswire-FirstCall/ -- NuVasive, Inc. , a medical device company focused on developing products for minimally disruptive surgical treatments for the spine, announced today financial results for the quarter and full year ended December 31, 2007.
The Company reported fourth quarter revenues of $47.0 million, a 53.9% increase over the $30.5 million for the fourth quarter of 2006 and a 21.8% increase over the $38.5 million for the third quarter of 2007. Full year 2007 revenues were $154.3 million, a 57.3% increase over the $98.1 million reported for the full year 2006.
Gross profit for the fourth quarter of 2007 was $38.9 million and gross margin was 82.9%, compared to a gross profit of $25.3 million and a gross margin of 83.1% in the fourth quarter of 2006. For the third quarter of 2007, gross profit was $31.6 million and gross margin was 82.0%. Gross profit for the full year 2007 was $126.9 million and gross margin was 82.3%, compared to a gross profit of $79.1 million and a gross margin of 80.6% for the full year 2006.
Total operating expenses for the fourth quarter of 2007 were $41.2 million, compared with $29.5 million in the fourth quarter of 2006 and $35.2 million in the third quarter of 2007. Full year 2007 operating expenses were $144.2 million compared to $133.3 million reported for the full year 2006. The higher operating expense in the 2007 periods resulted from continued investment in the Company’s next generation MAS(TM) products, additional sales costs directly associated with higher revenue, and a full year of enrollment in the NeoDisc clinical trial.
On a GAAP basis, the Company reported a net loss of $1.1 million or $(0.03) per share for the fourth quarter of 2007 and a loss of $11.3 million or $(0.32) per share for the full year 2007. On a non-GAAP basis, the Company reported net income of $2.9 million, or $0.08 per share, for the fourth quarter of 2007, and net income of $3.9 million, or $0.11 per share, for the full year 2007. The non-GAAP earnings per share calculations exclude, for the fourth quarter and full year, respectively, (i) stock based compensation of $3.6 million and $13.6 million, and (ii) amortization of acquired intangible assets of $0.4 million and $1.5 million.
Cash, cash equivalents and short and long-term investments were $89.7 million at December 31, 2007.
Alex Lukianov, Chairman and Chief Executive Officer, said, “2007 was another successful year for NuVasive. We continue to penetrate the U.S. market with our unique product offering. The adoption of SpheRx(R) II, DBR(R) II and XLP(TM) Lateral Plate has strengthened our MAS platform since mid-year. Our strategy of broadening the applications of the XLIF(R) procedure also continues to produce success, as surgeons further leverage our unique lateral approach into adult degenerative scoliosis and other procedures in the thoracic spine.”
Mr. Lukianov continued, “During 2008, we plan to achieve even deeper product penetration and expand our market share in the U.S. Our focus is to strengthen our existing positions in the lumbar and nerve monitoring market segments while simultaneously growing our cervical and thoracic positions. We plan to grow our cervical market share in 2008 with the introduction of key products such as our Helix(TM) anterior cervical plates and VuePoint(TM) posterior cervical system. Our NeuroVision(R) platform will expand with the introduction of a next generation NeuroVision nerve monitoring system that will offer full spinal cord monitoring. Our focus on infrastructure enhancements to support this growth will continue, including a move to our new corporate headquarters campus and implementation of a more scalable ERP system. We believe the substantial momentum our sales force has generated, coupled with our commitment to product and technique innovation, will continue to drive our annual growth in the mid-30 percent range to $500 million over the next several years.”
Reconciliation of Non-GAAP Information
Management uses certain non-GAAP financial measures such as non-GAAP earnings per share and non-GAAP net loss per share, which exclude stock based compensation and charges directly related to acquisition transactions such as in-process research and development, milestone payments, amortization of the acquired technology assets and certain non-recurring internal costs incurred as a result of acquisition transactions. Management does not consider these costs in evaluating the continuing operations of the Company. Therefore, management calculates the non-GAAP financial measures provided in this earnings release excluding these costs and uses these non-GAAP financial measures to enable it to analyze further and more consistently the period-to- period financial performance of its core business operations. Management believes that providing investors with these non-GAAP measures gives them additional important information to enable them to assess, in the same way management assesses, the Company’s current and future continuing operations. These non-GAAP measures are not in accordance with, or an alternative for, GAAP, and may be different from non-GAAP measures used by other companies. Set forth below are reconciliations of the non-GAAP financial measures to the comparable GAAP financial measure.
Conference Call
NuVasive will hold a conference call today at 5:30 p.m. ET / 2:30 p.m. PT to discuss the results. The dial-in numbers are 1-877-407-4018 for domestic callers and 1-201-689-8471 for international. A live Web cast of the conference call will be available online from the investor relations page of the Company’s corporate Web site at www.nuvasive.com.
After the live Web cast, the call will remain available on NuVasive’s Web site, www.nuvasive.com, through March 19, 2008. In addition, a telephonic replay of the call will be available until March 11, 2008. The replay dial-in numbers are 1-877-660-6853 for domestic callers and 1-201-612-7415 for international callers. Please use account number 3055 and conference ID number 269394.
About NuVasive
NuVasive is a medical device company focused on the design, development and marketing of products for the surgical treatment of spine disorders. The Company’s product portfolio is focused on applications in the over $4.2 billion U.S. spine fusion market. The Company’s current principal product offering includes a minimally disruptive surgical platform called Maximum Access Surgery, or MAS(TM), as well as a growing offering of cervical and motion preservation products.
The MAS platform offers advantages for both patients and surgeons such as reduced surgery and hospitalization time and faster recovery. MAS combines three categories of current product offerings: NeuroVision(R) a proprietary software-driven nerve avoidance system; MaXcess(R) a unique split-blade design retraction system; and specialized implants, like SpheRx(R) and CoRoent(R), that collectively minimize soft tissue disruption during spine surgery while allowing maximum visualization and surgical reproducibility. NuVasive’s product offering is also focused on cervical internal fixation products and its R&D pipeline emphasizes both MAS and motion preservation.
NuVasive cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause NuVasive’s results to differ materially from historical results or those expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to: the uncertain process of seeking regulatory approval or clearance for NuVasive’s products or devices, including risks that such process could be significantly delayed; the possibility that the FDA may require significant changes to NuVasive’s products or clinical studies; the risk that the Company’s revenue or profitability projections may prove incorrect because of unexpected difficulty in generating sales or achieving anticipated profitability; the risk that products may not perform as intended and may therefore not achieve commercial success; the risk that competitors may develop superior products or may have a greater market position enabling more successful commercialization; the risk that additional clinical data may call into question the benefits of NuVasive’s products to patients, hospitals and surgeons; and other risks and uncertainties more fully described in NuVasive’s press releases and periodic filings with the Securities and Exchange Commission. NuVasive’s public filings with the Securities and Exchange Commission are available at www.sec.gov. NuVasive assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.
nlaudico@theruthgroup.cominvestorrelations@nuvasive.com zkubow@theruthgroup.comjrando@theruthgroup.com
CONTACT: Kevin C. O’Boyle, EVP & Chief Financial Officer, NuVasive, Inc.,
+1-858-909-1800, investorrelations@nuvasive.com; Investors: Nick Laudico,
+1-646-536-7030, nlaudico@theruthgroup.com, or Zack Kubow, +1-646-
536-7020, zkubow@theruthgroup.com, or Media: Jason Rando, +1-646-536-7025,
jrando@theruthgroup.com, all of The Ruth Group for NuVasive, Inc.
Web site: http://www.nuvasive.com/
