Medical device company DJO Global posted results for its publicly reported subsidiary DJO Finance, reported a 3% increase in revenues and a 3% widening of losses.
The San Diego, Calif. company reported losses of $20.8 million on sales of $294.7 million for the 3 months ended June 29, 2013. That compared with losses of $20.2 million on sales of $286 million during the same period in 2012.
"We were pleased to see all of our business segments deliver strong growth in the second quarter, except for Recovery Sciences, which has been impacted by unfavorable market conditions and reimbursement hurdles," DJO president & CEO Mike Mogul said in prepared remarks. "Our Recovery Sciences business continues to be impacted by Medicare’s 2012 non-coverage decision related to Transcutaneous Electrical Nerve Stimulation (‘TENS’) for chronic low back pain (‘CLBP’) and slower than expected market conditions for capital equipment purchasing, which is impacting our Chattanooga business."
The company’s pre-tax, depreciation and amortization earnings shrank during the most recent quarter, driven in part by the struggling recovery sciences unit as well as by the impact of the medical device tax and increasing operations costs, Mogul added.