The San Diego-based spine surgery technology developer said in a news release that preliminary results for the quarter, ended June 30, 2020, revealed an operating loss of between -$35 million and -$40 million on a GAAP basis, with losses of between -$17 million and -$23 million on a non-GAAP basis.
Stay-at-home orders and elective surgical procedure delays as a result of COVID-19 were reflected in NuVasive’s net sales for the quarter, which it expects to come in between $202 million and $205 million. That marks about a -30% decline from the $292.1 million in revenue the company posted in the same quarter last year.
Additionally, the pandemic is causing NuVasive to record incremental charges, including ones related to inventory and accounts receivable, totaling between $20 million and $25 million and contributing to the company’s expected overall losses.
As of June 30, 2020, the company had cash, cash equivalents and short-term investments on hand reaching more than $920 million, along with an undrawn revolving credit facility of $550 million.
“For the second quarter 2020, case volumes decreased significantly in April, followed by an uptick in May and continued acceleration in June as lockdown restrictions eased and elective surgeries began to resume,” NuVasive CEO J. Christopher Barry said in the news release. “Although uncertainty remains around the COVID-19 pandemic, we saw positive signs of recovery and increased demand for elective procedures at the end of the quarter.
“As we look to the remainder of the year, these positive trends, coupled with our teams’ resiliency and responsiveness, give us confidence as we continue serving our surgeon partners and patients.”