Baxano Surgical Announces Preliminary Fourth Quarter and Full Year 2013 Unaudited Revenue
January 13 2014 - 7:30AM
Baxano Surgical, Inc. (Nasdaq:BAXS), a medical device company
focused on designing, developing and marketing minimally invasive
products to treat degenerative conditions of the spine affecting
the lumbar region, today announced preliminary unaudited revenue
for fourth quarter and full fiscal year 2013 in anticipation of
investor meetings in San Francisco during the week of January 13th.
Preliminary unaudited revenue for the fourth quarter of 2013 is
expected to be approximately $6.0 million, representing a 44%
increase from revenue of $4.1 million in the fourth quarter of 2012
and a 5% increase from revenue of $5.7 million in the third quarter
of 2013. The Company previously issued revenue guidance in the
range of $5.8 - $6.5 million for the fourth quarter ending December
31, 2013.
Preliminary revenue for the full fiscal year 2013 is expected to
be $18.6 million, representing a year-over-year growth of 28% over
fiscal year 2012 revenue of $14.6 million. On a pro forma basis, as
if Baxano, Inc. had been owned for the full year, fiscal 2013
revenue would have been $23.3 million. This compares to the
Company's previously issued pro forma total revenue guidance in the
range of $23.2 - $23.9 million for the full fiscal year 2013.
"We are pleased with our end of year performance as we completed
merger integration activities and have started to see stronger
performance from some of our core products," said Ken Reali,
President and CEO of Baxano Surgical. "Growth in the fourth
quarter was primarily driven by improved performance in our
iO-Flex® decompression instrument and VEO® direct lateral system,
both of which enjoyed solid sequential quarterly growth from the
third quarter."
Because the Company's results of operations for fiscal year 2013
have not yet been finalized, the preliminary results included in
this press release are subject to change as a result of the
period-end closing process and the audit of the Company's financial
statements by its independent registered public accounting
firm. See "Caution Concerning Forward-Looking Statements and
Preliminary Financial Results."
Reconciliation of GAAP Financial Information to Non-GAAP
Financial Information
To supplement the Company's consolidated financial statements
presented in accordance with GAAP, the Company uses non-GAAP
measures of certain components of financial performance, including
pro forma revenue, which are adjusted from results based on GAAP.
Although "as adjusted" financial measures are non-GAAP financial
measures, the Company believes that the presentation of "as
adjusted" financial measures calculated to reflect the Baxano
acquisition as if it had occurred at the beginning of 2013 are
useful adjuncts to the GAAP "as reported" financial measures. These
non-GAAP measures are provided to enhance investors' overall
understanding of the Company's current financial performance and
the Company's prospects for the future. We believe that providing
non-GAAP measures that adjust for the combined historical results
of Baxano Surgical and Baxano allows comparison of our core
operations from period to period. These non-GAAP measures may be
considered in addition to results prepared in accordance with
generally accepted accounting principles, but should not be
considered a substitute for, or superior to, GAAP results. The
non-GAAP measures included in this press release have been
reconciled to the most directly comparable GAAP measures.
Baxano Surgical, Inc. |
Reconciliation of GAAP
Financial Information to Non-GAAP Financial Information |
(in thousands) |
(Unaudited) |
|
|
GAAP revenue for the year ended December 31,
2013 |
$18,582 |
|
|
Baxano, Inc. revenue for period prior to
5/31/13 merger date |
4,725 |
|
|
Pro Forma revenue for the year ended December
31, 2013 |
$23,307 |
About Baxano Surgical, Inc.
Baxano Surgical, Inc. is a medical device company focused on
designing, developing, and marketing minimally invasive products to
treat degenerative conditions of the spine affecting the lumbar
region. Baxano Surgical currently markets the AxiaLIF® family of
products for single and two level lower lumbar fusion, the VEO®
lateral access and interbody fusion system, the iO-Flex system, a
proprietary set of flexible instruments used by surgeons during
spinal decompression procedures and the iO-Tome™ instrument, which
rapidly and precisely removes bone, specifically the facet joints,
which is commonly performed in spinal fusion
procedures. Baxano Surgical was founded in May 2000 and is
headquartered in Raleigh, North Carolina. For more information,
visit www.baxanosurgical.com.
AxiaLIF, VEO, iO-Flex and iO-Tome are registered
trademarks of Baxano Surgical.
Caution Concerning Forward Looking Statements and
Preliminary Financial Results
This press release includes statements that are based on our
current beliefs and assumptions. These statements constitute
"forward looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, and are intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Such statements are subject to risks
and uncertainties that are often difficult to predict, are beyond
our control, and which may cause results to differ materially from
expectations. Factors that could cause our results to differ
materially from those described include, but are not limited to,
the pace of adoption of our product technology by spine surgeons,
the outcome of coverage and reimbursement decisions by the
government and third party payors, the success of our continuing
product development efforts, the effect on our business of existing
and new regulatory requirements, our ability to raise additional
capital, our ability to comply with our settlement agreement and
Corporate Integrity Agreement with certain entities of the U.S.
government, stockholder class action lawsuits, and other economic
and competitive factors. For a discussion of the most significant
risks and uncertainties associated with Baxano Surgical's business,
please review the Company's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year ended December 31, 2012 and subsequent reports. You are
cautioned not to place undue reliance on these forward looking
statements, which are based on Baxano Surgical's expectations as of
the date of this press release and speak only as of the date of
this press release. We undertake no obligation to publicly update
or revise any forward looking statement, whether as a result of new
information, future events or otherwise.
In addition, the Company is currently undergoing its year-end
closing and audit process, which is not expected to be completed
for some time after the date of this press release. Because
the Company's results of operations for the fiscal year ended
December 31, 2013 have not yet been finalized, the preliminary
results included in this press release are subject to change as a
result of the period-end closing process and the audit of the
Company's financial statements by its independent registered public
accounting firm, PricewaterhouseCoopers LLP. These changes may
be material. The preliminary financial results included in
this press release have been prepared by, and are the
responsibility of, the Company's management. PricewaterhouseCoopers
LLP has not completed its audit of the Company's fiscal 2013
financial statements, and accordingly, PricewaterhouseCoopers LLP
does not express an opinion or any form of assurance with respect
to these preliminary financial results. These preliminary
financial results are not (and the Company's final financial
results will not be) necessarily indicative of results of future
operations. Accordingly, readers should not place undue reliance on
the Company's preliminary or final financial results. These
preliminary financial results should be read in conjunction with
the Company's previously disclosed consolidated historical
financial statements (and related notes).
CONTACT: Baxano Surgical Inc.
Tim Shannon, VP Finance and Interim Chief Financial Officer
919-926-8762
or
Westwicke Partners
Mark Klausner
443-213-0501
baxanosurgical@westwicke.com