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ATEC reported orthopedic revenue of USD $29.6 million, +8.5% vs. 2Q19. Although the company recorded the second-highest ever sales volume in June, overall procedure volumes declined -4% for the second quarter. However, ATEC continues to execute its critical initiatives including increased revenue per case (+14%), revenue from its top 20 surgeons (+25%) and revenue from new products (+61%). These factors offset the procedure volume declines for the quarter.
ATEC remains on track to deliver 10 to 12 new products for the year. It will address weakness in its cervical portfolio in 3Q with the alpha launches of the Insignia Cervical Plate and InVictus posterior cervical system. InVictus will get added modularity to integrate with the Sigma TLIF retractor in 4Q. Additionally, the company will debut its new lateral surgical approach called PTP (prone transpsoas) during NASS in 4Q.
“We look at a specific procedure applied to a specific pathology. If you look at the applicability of robotics, it’s relatively narrow. As ubiquitous as everybody wants to think that they are, they’re just not. It’s interesting pieces of equipment that are not getting utilized significantly. What specific pathologic application is robotics solving? At this point it is only solving placing pedicle screws, which have been done for years.” – Patrick Miles, ATEC Chairman and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $27.1 | $25.0 | $2.1 | 8.5% |
| Orthobiologics | $2.5 | $2.3 | $0.2 | 8.2% |
| Total | $29.6 | $27.3 | $2.3 | 8.5% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $54.5 | $47.3 | $7.3 | 15.3% |
| Orthobiologics | $5.2 | $4.6 | $0.6 | 13.4% |
| Total | $59.7 | $51.9 | $7.9 | 15.2% |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $28.8 | $26.1 | $2.7 | 10.5% |
| OUS | $0.8 | $1.2 | ($0.4) | (35.2%) |
| Total | $29.6 | $27.3 | $2.3 | 8.5% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $57.9 | $49.0 | $8.9 | 18.1% |
| OUS | $1.8 | $2.8 | ($1.0) | (34.9%) |
| Total | $59.7 | $51.9 | $7.9 | 15.2% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $29.6 | |
| Cost of Sales | $8.8 | 29.7% |
| Selling and Admin | $27.0 | 91.2% |
| R & D | $3.7 | 12.4% |
| Other | $5.9 | 20.1% |
| Net Earnings | ($15.8) | (53.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ATEC reported orthopedic revenue of USD $29.6 million, +8.5% vs. 2Q19. Although the company recorded the second-highest ever sales volume in June, overall procedure volumes declined -4% for the second quarter. However, ATEC continues to execute its critical initiatives including increased revenue per case (+14%), revenue from its top 20...
ATEC reported orthopedic revenue of USD $29.6 million, +8.5% vs. 2Q19. Although the company recorded the second-highest ever sales volume in June, overall procedure volumes declined -4% for the second quarter. However, ATEC continues to execute its critical initiatives including increased revenue per case (+14%), revenue from its top 20 surgeons (+25%) and revenue from new products (+61%). These factors offset the procedure volume declines for the quarter.
ATEC remains on track to deliver 10 to 12 new products for the year. It will address weakness in its cervical portfolio in 3Q with the alpha launches of the Insignia Cervical Plate and InVictus posterior cervical system. InVictus will get added modularity to integrate with the Sigma TLIF retractor in 4Q. Additionally, the company will debut its new lateral surgical approach called PTP (prone transpsoas) during NASS in 4Q.
“We look at a specific procedure applied to a specific pathology. If you look at the applicability of robotics, it’s relatively narrow. As ubiquitous as everybody wants to think that they are, they’re just not. It’s interesting pieces of equipment that are not getting utilized significantly. What specific pathologic application is robotics solving? At this point it is only solving placing pedicle screws, which have been done for years.” – Patrick Miles, ATEC Chairman and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $27.1 | $25.0 | $2.1 | 8.5% |
| Orthobiologics | $2.5 | $2.3 | $0.2 | 8.2% |
| Total | $29.6 | $27.3 | $2.3 | 8.5% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $54.5 | $47.3 | $7.3 | 15.3% |
| Orthobiologics | $5.2 | $4.6 | $0.6 | 13.4% |
| Total | $59.7 | $51.9 | $7.9 | 15.2% |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $28.8 | $26.1 | $2.7 | 10.5% |
| OUS | $0.8 | $1.2 | ($0.4) | (35.2%) |
| Total | $29.6 | $27.3 | $2.3 | 8.5% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $57.9 | $49.0 | $8.9 | 18.1% |
| OUS | $1.8 | $2.8 | ($1.0) | (34.9%) |
| Total | $59.7 | $51.9 | $7.9 | 15.2% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $29.6 | |
| Cost of Sales | $8.8 | 29.7% |
| Selling and Admin | $27.0 | 91.2% |
| R & D | $3.7 | 12.4% |
| Other | $5.9 | 20.1% |
| Net Earnings | ($15.8) | (53.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
