Alphatec reported a 6 percent increase in net revenue during the second quarter, hitting $22 million.
"Our second quarter results, and numerous leading indicators, drive our growing confidence in the bright future for ATEC," said Pat Miles, Alphatec's chairman and CEO. "While we continue to anticipate some short-term variability, we expect that our organic product development machine will accelerate growth."
Here are five key notes from the company's second quarter financial report:
1. In addition to reporting net revenue growth, Alphatec reported U.S. commercial gross margin of 69.5 percent. Cash and cash equivalents were reported as $44.9 million as of June 30.
2. Alphatec reported increased revenue attributable to newly converted surgeons, doubling the number sequentially. The company reported an increased contribution from dedicated distribution partners and agents to 57 percent of U.S. commercial revenue.
3. Operating loss for the second quarter was $6.5 million, compared to $0.7 million in the first quarter of the year. The gap in operating loss is primarily attributed to a $6.2 million contract settlement gain that occurred in the first quarter.
4. For the second quarter, Alphatec reported long-term debt including $30.6 million in term debt and $8.2 million outstanding under the company's revolving credit facility.
5. Alphatec expects 2018 revenue to hit $95 million, with an acceleration in growth for the second half of the year.
6. In the second quarter report, Alphatec said courts have dismissed patent litigation brought by NuVasive covering the implant and sequential dilators used during lateral surgery and denied NuVasive's motion for preliminary injunction. The ruling allows Alphatec to continue selling its lateral surgery offering as the lawsuit is pending.