Here are five things to know:
1. SeaSpine revenue was down 3 percent to $32.7 million in the third quarter. Orthobiologics revenue dropped 1 percent to $16.5 million and spinal fusion hardware revenue dropped 5 percent to $16.2 million.
2. Gross profit for the quarter was down 46.9 percent, driven by a $4.4 million charge for excess and obsolete spinal fusion hardware inventory. Most of the inventory was purchased by Integra LifeSciences prior to the spin-off. The company’s product inventory, Moziak, also negatively impacted gross profit; it cost $1 million more than expected.
3. The operating expenses increased to $30 million in the quarter, compared to $23.8 million over the same period last year. The company’s research and development was up to $2.4 million for the quarter driven by higher compensation costs from increased headcount and higher external costs related to product development and clinical studies.
4. Net loss for the quarter was $14.2 million, compared with $5 million for the same period last year. The company reported $38.5 million in cash and cash equivalents at the end of the quarter.
5. Full year revenue is estimated to hit $133 million to $135 million, a 3 percent to 4 percent decline over 2014. The company isn’t expected to incur significant spin-off and transition service costs in the future.
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