SeaSpine Announces Preliminary Results for Second Quarter 2017
July 11 2017 - 6:30AM
SeaSpine Holdings Corporation (NASDAQ:SPNE), a global medical
technology company focused on surgical solutions for the treatment
of spinal disorders, announced today preliminary financial results
for the three-months ended June 30, 2017.
Preliminary revenue for second quarter 2017 is expected to be in
the range of $34.0 to $34.2 million, an increase of approximately
3% compared to the prior year period. Based on this
preliminary estimate, spinal instrumentation revenue is expected to
be approximately $16.6 million and orthobiologics revenue is
expected to be approximately $17.6 million. U.S. revenue for
the second quarter 2017 is expected to increase approximately 1%,
to approximately $30.4 million, with US spinal instrumentation
revenue expected to decrease approximately 5% and orthobiologics
revenue expected to increase approximately 7.5% over the prior year
period.
At June 30, 2017, cash and cash equivalents are expected to be
approximately $12.3 million and outstanding borrowings under the
Company’s credit facility are expected to be approximately $4.0
million. SeaSpine realized $4.6 million in net proceeds in the
second quarter 2017 through the sale of approximately 477,000
shares of its common stock under its “at the market” equity
offering program.
“We are executing on our strategy to deliver mid-single digit
revenue growth in 2017 while simultaneously focusing on cash
conservation,” said Keith Valentine, President and Chief Executive
Officer. “We continue to focus on our strengthening distributor
base and expanding product portfolio.”
About SeaSpineSeaSpine (www.seaspine.com) is a
global medical technology company focused on the design,
development and commercialization of surgical solutions for the
treatment of patients suffering from spinal disorders. SeaSpine has
a comprehensive portfolio of orthobiologics and spinal
instrumentation solutions to meet the varying combinations of
products that neurosurgeons and orthopedic spine surgeons need to
perform fusion procedures on the lumbar, thoracic and cervical
spine. SeaSpine’s orthobiologics products consist of a broad range
of advanced and traditional bone graft substitutes that are
designed to improve bone fusion rates following a wide range of
orthopedic surgeries, including spine, hip, and extremities
procedures. SeaSpine’s spinal instrumentation portfolio consists of
an extensive line of products to facilitate spinal fusion in
minimally invasive surgery (MIS), complex spine, deformity and
degenerative procedures. Expertise in both orthobiologic sciences
and spinal instrumentation product development allows SeaSpine to
offer its surgeon customers a differentiated portfolio and a
complete solution to meet their fusion requirements. SeaSpine
currently markets its products in the United States and in over 30
countries worldwide.
Forward-Looking StatementsSeaSpine cautions you
that statements included in this news release that are not a
description of historical facts are forward-looking statements that
are based on the Company's current expectations and assumptions.
Such forward-looking statements include, but are not limited to,
statements relating to: delivering mid-single digit revenue growth
in 2017 while simultaneously conserving cash; and continuing to
strengthen the Company’s distributor base and expand its product
portfolio. In addition, this release contains preliminary
financial results for the second quarter 2017. Preliminary
results are provided prior to completion of all internal and
external review procedures and therefore are subject to
adjustment. Among the factors that could cause or contribute
to material differences between the Company’s actual results and
the expectations indicated by the forward-looking statements are
risks and uncertainties that include, but are not limited to:
surgeons’ willingness to continue to use the Company’s existing
products and to adopt its newly launched products, including the
risk that the Company’s products do not demonstrate adequate safety
or efficacy, independently or relative to competitive products, to
support expected levels of demand or pricing; the ability of newly
launched products to perform as designed and intended and to meet
the clinical needs of surgeons and patients; the Company’s ability
to attract new, high-quality distributors, whether as a result of
inability to reach agreement on financial or other contractual
terms or otherwise, disruption to the Company’s existing
distribution network as new distributors are added, and the ability
of new distributors to generate growth or offset disruption to
existing distributors; continued pricing pressure, whether as a
result of consolidation in hospital systems, competitors or others,
as well as exclusion from major healthcare systems, whether as a
result of unwillingness to provide required pricing or otherwise;
the risk of supply shortages, including as a result of the
Company’s dependence on a limited number of third-party suppliers
for components and raw materials, or otherwise; unexpected expense,
including as a result of developing and supporting the launch of
new products; the Company’s ability to continue to invest in
product development and sales and marketing initiatives at levels
sufficient to drive future revenue growth; general economic and
business conditions in the markets in which the Company does
business, both in the U.S. and abroad; and other risks and
uncertainties more fully described in the Company’s news releases
and periodic filings with the Securities and Exchange Commission.
The Company’s public filings with the Securities and Exchange
Commission are available at www.sec.gov.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date when made. SeaSpine
does not intend to revise or update any forward-looking statement
set forth in this news release to reflect events or circumstances
arising after the date hereof, except as may be required by
law.
Investor Relations Contact
Lynn Pieper Lewis
(415) 937-5402
ir@seaspine.com
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