SpineGuard reported revenue was down in the first half of 2014 as compared to the same period last year.
"Paradoxically, we feel stronger after the first half despite revenue being below what one should expect from SpineGuard," said CEO Pierre Jerome. "Indeed, while the current transformations take place within our sector — on the health economic and industrial front — are penalizing us in the short term: they first and foremost validate our ambition and our strategy."
Here are eight key points from the company's financial report:
1. Revenue was down 6 percent, due essentially to short-term unfavorable conditions in the United States.
2. The United States accounted for 50 percent of the units sold and 71 percent of first half of the year revenue.
3. There were tight controls of operating expenses, which limited the impact of the lower-than-expected first half of the year.
4. SpineGuard's gross margin was 85.6 percent on June 20, compared to 87.5 percent at the same point last year. The decrease reflects how additional production costs impact the XS range products pre-launched at the end of 2013.
5. The company reported higher net loss in 2014 compared with the first half of 2013.
6. Working capital requirements were flat compared with the end of 2013, showing the company's ability to control cash requirements to finance operations.
7. SpineGaurd will continue to roll out and implement the roadmap presented at the time of its initial public offering. The sales team has grown, and entire company workforce is up from the same period last year.
8. The company's PediGuard is adopted at more than 20 percent of the United States teaching institutions.
9. There are eight scientific papers associated with PediGuard scheduled for presentations at meetings through the end of the year. The PediGuard miniaturized version sales are accelerating since it became fully available in June.
10. Smart Screw development is progressing faster than anticipated. The company has prototypes to show players in the field interested in a co-development partnership.