ConforMIS reports Q3 revenue up 20%, net loss of $17.1M after voluntary recall: 8 key notes

Written by Laura Dyrda | November 03, 2015 | Print  |

ConforMIS reported third quarter financial results after resolving a voluntary recall on Aug. 31, 2015.

Here are eight key notes on the financial report:

 

1. Total revenue was up 20 percent year-over-year, reaching $13.9 million in the third quarter. Product revenue reached $13.5 million, up 12 percent over the same period last year.

 

2. In the United States, product revenue jumped 19 percent year-over-year. In the rest of the world, product revenue decreased 6 percent.

 

3. Sales for the iTotal CR, iUni and iDuo increased 6 percent to $12.7 million over the same period last year. The company launched the iTotal PS on a limited basis in the United States in February, and revenue from iTotal PS was $800,000 in the third quarter.

 

4. Gross profit was down in the third quarter, reaching only $3.6 million. Gross profit was 26 percent of revenue, compared to 39 percent in the same period last year. The gross margin decrease was caused by additional production costs and a decrease in revenue after the Aug. 31 voluntary recall.

 

5. Total operating expenses increased 32 percent in the third quarter to $19.8 million. The increase was due to higher sales and marketing expenses and administrative expenses. There were slightly lower research and development expenses compared to the same period last year.

 

6. The company reported $17.1 million net loss, or $0.45 per share. This is higher than last year's net loss of $10.4 million.

 

7. ConforMIS reaffirmed its Aug. 31 financial guidance for the full year, expecting total revenue to reach $64 million to $66 million, a 33 percent to 37 percent growth. The guidance includes an $8 million reduction due to the voluntary recall.

 

8. By the end of the year, ConforMIS expects product revenue at $60 million to $62 million and royalty revenue of around $4 million.

 

More articles on orthopedic devices:
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5 key notes on the European spine devices market
Zimmer Biomet tackles Q3 after merger; sales up 59%: 10 key notes

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