DJO Global saw losses continue to grow in the 1st quarter even as revenue swelled, according to newly reported quarterly earnings.
DJO Global reported losses of $38.1 million on sales of $278.9 million for the 3 months ended March 31, 2016. Losses grew 8.2% while total sales grew 12.7% compared with the same period in 2015, the company reported.
Adjusted EBITDA for the company was $48.9 million, up 5.6% from the 2015’s $46.3 million, the company said.
“Our 1st quarter performance shows the underlying strength of our focus on Motion is Medicine paired with rapid new product innovations. We are especially pleased to see the terrific accelerating performance in our Orthopedic Implants and Consumer businesses,” CEO Mike Mogul said in a press release.
The company reaffirmed its guidance for the full year, expecting to see revenue grow between 6% and 8% with adjusted EBITDA growth rates between 8% and 10%.
Last month, Stryker (NYSE:SYK) blasted orthopedics rival DJO Global in a poaching lawsuit claiming that DJO and a quintet of ex-sales reps gutted its Indiana sales territory and are looking to lure more of the former Stryker colleagues into leaving.
The lawsuit aims “To stop the targeted raiding of its employees by its direct competitor DJO Global, in concert with several former Stryker employees,” Kalamazoo-Mich.-based Stryker said in the April 25 complaint. The suit alleges that the scheme by DJO and a quintet of former Stryker sales reps – Kywin Supernaw, Brad Bolinger, Justin Davis, Jake Eisterhold, Eric Huebner and Tim Broecker – took a roughly 33% bite out of its ortho & trauma sales in Indiana last year.
Stryker claimed that Davis, Eisterhold & Huebner – who put up 33% of SYK’s ortho and trauma sales in the Hoosier State last year – abruptly bolted to DJO in February, reporting to Supernaw, who had already jumped ship in 2011 (taking 2 employees with him to SNN distributor, the lawsuit alleged).