NuVasive reported revenue increased 9.8 percent in the third quarter, as the company prepares for a CEO transition.
In October, NuVasive announced former Medtronic executive J. Christopher Barry would become CEO, effective Nov. 5, and current CEO Gregory T. Lucier would remain chairman of the board.
Here are five things to know:
1. Third quarter revenue hit $271.3 million, a 9.8 percent increase over the same period last year. The overall U.S. case volume increased more than 7 percent for the quarter.
2. Several factors affected the company's financial performance, including improvement of its West Carrollton, Ohio-based manufacturing facility. The company expects the facility to drive an additional 130 to 150 basis points in operating margins in 2019.
"We made solid progress with our in-source manufacturing initiatives by bringing in additional SKUs during the third quarter with throughput ramping to higher volumes," said Mr. Lucier. "This strategic investment is on track and will become a business advantage, both to drive a competitive cost position and to control the quality required to produce evermore complex implants."
3. NuVasive reported GAAP net income of $15.9 million for the third quarter.
4. The company increased full-year revenue guidance by $5 million to around $1.1 billion and reduced the non-GAAP operating margin guidance to 15 percent to 15.5 percent, due to accelerated investments in infrastructure and commercial sales force. NuVasive expects the overall spine market growth to trend up.
5. During the third quarter, NuVasive unveiled its Pulse surgical automation platform and its spine precision partnership with Siemens Healthineers as well as entered into a strategic partnership with Biedermann Technologies to further complex spine deformity technologies. The company also launched products in biologics.