NuVasive Reports Second Quarter 2008 Financial Results
NuVasive reported second quarter revenues of $57.4 million, a 61.2%increase over the $35.6 million for the second quarter of 2007 and a 12.2%increase over the $51.2 million for the first quarter of 2008.
Gross profit for the second quarter of 2008 was $47.8 million and grossmargin was 83.3%, compared to a gross profit of $28.9 million and a grossmargin of 81.2% in the second quarter of 2007. For the first quarter of 2008,gross profit was $42.1 million and gross margin was 82.2%.
Total operating expenses for the second quarter of 2008 were $48.5 millioncompared to $34.0 million in the second quarter of 2007 and $50.5 million inthe first quarter of 2008. First quarter 2008 operating expenses included anin-process research and development charge of $4.2 million, or ($0.12) perdiluted share related to the acquisition of pedicle screw intellectualproperty. Excluding the in-process research and development charge, totalfirst quarter 2008 operating expenses were $46.3 million.
On a GAAP basis, the Company reported a net loss of $0.5 million or$(0.01) per share for the second quarter of 2008. On a non-GAAP basis, theCompany reported net income of $5.1 million, or $0.14 per share, for thesecond quarter of 2008. The non-GAAP earnings per share calculations exclude(i) stock based compensation of $5.1 million and (ii) amortization of acquiredintangible assets of $0.5 million.
Cash, cash equivalents and short and long-term investments were $265.7million at June 30, 2008.
On July 24th, 2008, NuVasive completed its previously announcedacquisition of the Osteocel biologics business from Osiris Therapeutics. TheOsteocel business includes a proprietary adult stem cell bone graft productwhich is the only viable bone matrix product on the market that provides thethree beneficial properties similar to autograft: osteoconduction (provides ascaffold for bone growth), osteoinduction (bone formation stimulation) andosteogenesis (bone production).
Alex Lukianov, Chairman and Chief Executive Officer, said, "Our robustresults in the second quarter were driven by the continued maturation of ourexclusive sales force and its growing expertise in selling the full mix of ourinnovative product portfolio. We also successfully executed on severalcomponents of our growth strategy. These included the recent closing of theOsteocel acquisition, conversion of our enterprise software platform and thecontinued enrollment of our NeoDisc clinical trial, which we expect tocomplete in August 2008. In addition, we completed our planned expansion ofour cervical product offering with the full national launch of our Helix MiniPlate and VuePoint posterior system."
Mr. Lukianov continued, "We are pleased to complete the acquisition of theOsteocel biologics business, which represents a significant milestone in ourstrategy to expand our product portfolio with synergistic and innovativetechnologies. We believe there is substantial opportunity to create anaggressive marketing program to achieve this product's full potential and,combined with our Formagraft product, we look to create a $100 millionbiologics business over the next several years."
Mr. Lukianov added, "We continue to execute on our strategic objectives,including rapid product development, advancement of our MAS platform,continued adoption of our XLIF procedure, and significant expansion of ouroperating infrastructure. These initiatives are key to our long term growthand ability to continue increasing our market share. We are committed toadvancing all of these objectives in concert with robust revenue growth andexpanding profitability. Although global
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