Surgalign posts Q4 net loss but encouraged by clearance of AR spine system

Spinal Tech

Surgalign Holdings' global revenue for the fourth quarter decreased 16.8 percent year over year to $21.8 million as COVID-19 headwinds such as hospital staff shortages and procedural restrictions continued to affect surgical specialties.

Six notes:

1. The company's fourth-quarter net loss was $88.8 million, which included a $72.1 million loss related to the acquisition of Interneural Networks, compared to a net loss of $118.1 million for the same period the prior year, which included a $93.5 million loss tied to the acquisition of Holo Surgical.

2. Surgalign's gross profit for the fourth quarter was $12.3 million, a 3.9 percent decrease from the fourth quarter of 2020.

3. Fourth-quarter general and administrative expenses decreased 6.9 percent to $25.4 million, and research and development expenses increased 122.7 percent to $4.9 million compared to the same period in 2020.

4. In January, the FDA cleared HOLO Portal surgical guidance system for lumbar spine procedures. Surgalign said the device is the world’s first artificial intelligence-driven augmented reality guidance system for spine surgery.

5. "We are squarely focused on putting the pieces in place to allow us to drive the long-term adoption of HOLO," President and CEO Terry Rich said in a March 15 news release. "We remain incredibly excited about the opportunity that exists for HOLO within the initial spine surgery market but also for the broader opportunity for the platform as we move into additional procedural areas and incremental parts of the care continuum outside of the operating room."

6. Surgalign appointed David Lyle as its CFO on March 7. Mr. Lyle has more than 20 years of experience in financial leadership and a "proven track record of successfully scaling high growth technology," the company said.

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