During the first quarter, the company took a charge of $43 million in anticipation of a proposed resolution of criminal and civil matters related to an investigation of its own growth stimulation business, which reached an agreement with the United States Attorney’s Office for the District of Massachusetts. The company also took a $3 million charge to establish a reserve connection with the potential fines and penalties related to the possible violation of the Foreign Corrupt Practices Act, due to former actions with a Mexican orthopedic distribution entity.
Despite the charges, the $139.2 million reported net sales for the first quarter of 2011 were still slightly higher than the $138.8 million reported for the first quarter of last year. The company reported total net sales in its spinal business at $72.6 million, a 1 percent increase over last year. The orthopedic business reported $40.5 million, a 6 percent increase, and the sports medicine reported $24.7 million, a 5 percent increase.
The increase in the orthopedics market was led by its external fixation platform and an increase in the Trinity Evaluation systems for additional orthopedic applications.
Read the release on the financial report for Orthofix.
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