Alphatec Holdings reported its first quarter revenue grew 25 percent to 26 percent based on its preliminary results, but the coronavirus has forced the company to make some changes.
Six things to know:
1. Alphatec attributes its first quarter revenue growth to rapid adoption of new technologies it released over the past two years. First quarter revenue hit around $30 million, and new product revenue is 55 percent of Alphatec's U.S. revenue.
2. The company has been operating under social-distancing and stay-at-home requirements since March 15, but continues to work closely with surgeons and sales channel agents as well as its supply chain partners to make necessary changes so that it can move forward with upcoming product releases.
3. When elective procedures ramp back up again, Alphatec anticipates it will be able to meet the needs of surgeons who experience increased case volumes after the pandemic.
4. Alphatec put in place a voluntary salary-to-equity conversion program, which allowed leadership to preserve $750,000 in cash compensation for the second quarter to support payroll protection for hourly and underemployed salaried team members. Alphatec employees could also donate sick time to employees who are unable to work.
5. Due to the COVID-19 pandemic, Alphatec suspended its 2020 revenue guidance as the company cannot determine how long elective spine surgeries will be suspended in the U.S. or what the recovery time will be.
6. Alphatec completed a draw of $20 million under its credit facility with Squadron Medical Finance Solutions.