Orthofix delayed its second quarter financial report release to spend additional time evaluating items related to entries in the previous restatement of the first quarter's financial results.
"While it is unfortunate we have discovered items that require additional analysis in certain previous restatement entries, considering the complexity of our prior restatement, the identification of potential technical errors is understandable," said Orthofix President and CEO Brad Mason. "We look forward to finalizing the analysis as quickly as possible and bringing the investment community up-to-date on the recent performance of the business."
He also reported there could be changes to the historical net sales and net income totals. But these changes may not have an impact on the underlying business performance going forward. Despite this set back, the report did reveal a few expectations: net sales are expected to reach $101.3 million. In the first quarter, the company reported a 2 percent decrease in net sales, which reached $103.4 million.
In June, the company reported short interest shares totaled nearly 892,000, a 37.3 percent increase from June 13 to June 30. Around 5 percent of the company's shares are short sold and Zack's upgraded the company from "underperform" to "neutral" on June 2.
In recent months the company has also undergone several executive leadership changes. James F. Hinrichs was appointed to the board of directors and Mark A. Heggestad to CFO.
The company also expects the spine fixation net sales to reach $20.2 million, which is down from the first quarter report of $22.8 million. The first quarter spine sales were down 10.6 percent primarily due to international sales. Expected second quarter biologics net sales are $13.9 million and extremities fixation net sales are estimated to reach $27.3 million.
The company intends to fine a Form 12b-25 with the Securities and Exchange Commission for the second quarter and will release the second quarter financial results by the end of August.