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DJO reported orthopedic revenue of USD $85.2 million, -33.8% vs. 2Q19. The company’s joint replacement business faced sharp declines in April, but improved sequentially throughout the quarter to exit June with sales down only -3%. July brought a return to growth, and company leadership expects 3Q to be roughly flat for its overall MedTech business line. However, within that segment, DJO’s Reconstructive products tend to have higher growth rates.
The company continued to address portfolio gaps by launching the EMPOWR Partial knee and receiving FDA clearance for the AltiVate Anatomic CS Edge shoulder. DJO also leveraged its expertise in connected medicine to launch Motion iQ, software designed to connect the patient, surgeon and care team throughout the continuum of care.
“Our Reconstructive business was in a positive zone in July. That doesn’t mean the industry is in a positive zone overall, because we’ve been taking share consistently in that industry for a couple of years now.” – Matt Trerotola, Colfax President 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 | |
|---|---|---|---|---|
| Joint Replacement | $61.0 | $91.0 | ($30.0) | (33%) |
| Knees | $14.6 | $23.5 | ($8.9) | (37.8%) |
| Hips | $14.6 | $20.0 | ($5.4) | (26.9%) |
| Extremities | $31.7 | $47.4 | ($15.7) | (33.1%) |
| Other (Recovery Sciences) | $24.2 | $37.8 | ($13.6) | (35.9%) |
| Total | $85.2 | $128.8 | ($43.6) | (33.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $150.3 | $180.8 | ($30.5) | (16.9%) |
| Knees | $37.9 | $47.3 | ($9.5) | (20%) |
| Hips | $34.4 | $40.1 | ($5.7) | (14.3%) |
| Extremities | $78.1 | $93.4 | ($15.4) | (16.4%) |
| Other (Recovery Sciences) | $58.3 | $71.9 | ($13.6) | (18.9%) |
| Total | $208.6 | $252.7 | ($44.1) | (17.5%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $63.5 | $94.5 | ($31.1) | (32.9%) |
| OUS | $21.7 | $34.2 | ($12.5) | (36.6%) |
| EMEA | $15.8 | $25.6 | ($9.8) | (38.4%) |
| Asia Pacific | $4.3 | $5.0 | ($0.7) | (14.6%) |
| Rest of World | $1.7 | $3.7 | ($2.0) | (53.6%) |
| Total | $85.2 | $128.8 | ($43.6) | (33.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $155.4 | $185.5 | ($30.1) | (16.2%) |
| OUS | $53.2 | $67.2 | ($14.0) | (20.9%) |
| EMEA | $39.7 | $50.2 | ($10.5) | (21%) |
| Asia Pacific | $8.8 | $9.8 | ($1.0) | (10.5%) |
| Rest of World | $4.7 | $7.2 | ($2.5) | (34.4%) |
| Total | $208.6 | $252.7 | ($44.1) | (17.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $620.4 | |
| Cost of Sales | $379.3 | 61.1% |
| Selling and Admin | $235.7 | 38% |
| Other | $13.4 | 2.2% |
| Net Earnings | ($8.0) | (1.3%) |
| $0.0 | 0% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DJO reported orthopedic revenue of USD $85.2 million, -33.8% vs. 2Q19. The company’s joint replacement business faced sharp declines in April, but improved sequentially throughout the quarter to exit June with sales down only -3%. July brought a return to growth, and company leadership expects 3Q to be roughly flat for its overall MedTech...
DJO reported orthopedic revenue of USD $85.2 million, -33.8% vs. 2Q19. The company’s joint replacement business faced sharp declines in April, but improved sequentially throughout the quarter to exit June with sales down only -3%. July brought a return to growth, and company leadership expects 3Q to be roughly flat for its overall MedTech business line. However, within that segment, DJO’s Reconstructive products tend to have higher growth rates.
The company continued to address portfolio gaps by launching the EMPOWR Partial knee and receiving FDA clearance for the AltiVate Anatomic CS Edge shoulder. DJO also leveraged its expertise in connected medicine to launch Motion iQ, software designed to connect the patient, surgeon and care team throughout the continuum of care.
“Our Reconstructive business was in a positive zone in July. That doesn’t mean the industry is in a positive zone overall, because we’ve been taking share consistently in that industry for a couple of years now.” – Matt Trerotola, Colfax President 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 | |
|---|---|---|---|---|
| Joint Replacement | $61.0 | $91.0 | ($30.0) | (33%) |
| Knees | $14.6 | $23.5 | ($8.9) | (37.8%) |
| Hips | $14.6 | $20.0 | ($5.4) | (26.9%) |
| Extremities | $31.7 | $47.4 | ($15.7) | (33.1%) |
| Other (Recovery Sciences) | $24.2 | $37.8 | ($13.6) | (35.9%) |
| Total | $85.2 | $128.8 | ($43.6) | (33.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $150.3 | $180.8 | ($30.5) | (16.9%) |
| Knees | $37.9 | $47.3 | ($9.5) | (20%) |
| Hips | $34.4 | $40.1 | ($5.7) | (14.3%) |
| Extremities | $78.1 | $93.4 | ($15.4) | (16.4%) |
| Other (Recovery Sciences) | $58.3 | $71.9 | ($13.6) | (18.9%) |
| Total | $208.6 | $252.7 | ($44.1) | (17.5%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $63.5 | $94.5 | ($31.1) | (32.9%) |
| OUS | $21.7 | $34.2 | ($12.5) | (36.6%) |
| EMEA | $15.8 | $25.6 | ($9.8) | (38.4%) |
| Asia Pacific | $4.3 | $5.0 | ($0.7) | (14.6%) |
| Rest of World | $1.7 | $3.7 | ($2.0) | (53.6%) |
| Total | $85.2 | $128.8 | ($43.6) | (33.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $155.4 | $185.5 | ($30.1) | (16.2%) |
| OUS | $53.2 | $67.2 | ($14.0) | (20.9%) |
| EMEA | $39.7 | $50.2 | ($10.5) | (21%) |
| Asia Pacific | $8.8 | $9.8 | ($1.0) | (10.5%) |
| Rest of World | $4.7 | $7.2 | ($2.5) | (34.4%) |
| Total | $208.6 | $252.7 | ($44.1) | (17.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $620.4 | |
| Cost of Sales | $379.3 | 61.1% |
| Selling and Admin | $235.7 | 38% |
| Other | $13.4 | 2.2% |
| Net Earnings | ($8.0) | (1.3%) |
| $0.0 | 0% |
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.
