NuVasive (NSDQ:NUVA) swung to red for the 4th quarter and full-year 2011, largely on the back of an $18.2 million writedown of intangible assets.
The San Diego-based spinal implant maker posted a loss of $10.0 million, or 24 cents per share, on sales of $150.2 million for the 3 months ended Dec. 31, 2012. That’s a top-line gain of 16.2% compared with Q4 2010, when NuVasive posted profits of $61.9 million, or $1.39 EPS.
For the full year, the company reported losses of $69.8 million, or $1.73 per share, on sales of $540.5 million, a revenue increase of $13.0% compared with the prior year, when NuVasive reported profits of $78.3 million, or $1.85 EPS, on sales of $478.2 million.
Excluding 1-time items, adjusted earnings for the 4th quarter reached $11.4 million, or 27 cents per share. Adjusted earnings for the full year were $43.9 million, or $1.07 per share.
“Our financial performance in 2011 attests to the exceptional execution of our market-share taking strategy, which drove revenue growth of 13% within a challenged US spine market that did not grow," chairman & CEO Alex Lukianov said in prepared remarks. "As the spine market shifts toward more minimally invasive procedures, NuVasive is ready to further penetrate the market and we expect to again lead the industry in market share gains in 2012. Normalized for the full-year impacts of certain 2011 events, we expect to improve the operating profile of our business in 2012, with a pre-tax earnings growth rate nearly 2 times the rate of revenue growth. Through the breadth of our procedural offerings, increased global expansion, and continued focus on superior clinical outcomes, we are well positioned to achieve our longer-term goal of becoming the #3 company in spine, with $1 billion in revenue and a greatly improved profitability profile.”
NuVasive said it expects to post revenues of about $615 million this year, with EPS of 9 cents and adjusted EPS of 93 cents.
Lukianov told analysts on a conference call that the company is eager to move on with an appeal of its $101.2 million loss to Medtronic (NYSE:MDT) in a patent infringement care last year.
"Things have largely gone as anticipated on our end, so we can’t really speculate as to how of that is all going to shake out," Lukianov said. "But were optimistic and excited to get to the point of starting the appellate process."
NUVA shares were trading at $15.01 as of about 12:20 today, down 2.9% on the day.
