SeaSpine Holdings (NSDQ:SPNE) is trading up despite posting losses per share in its 2nd quarter that were higher than analysts on Wall Street were looking for.
The Carlsbad, Calif.-based company reported losses of $12 million, or $1.07 per share, on sales of $33.2 million for the 3 months ended June 30. That amounts to a 32.2% decrease in losses as sales shrunk a smaller 0.8% comapred with the same period last year.
Analysts on Wall Street were looking for losses per share of 79¢, well below where losses ended up for the company during its 2nd quarter.
“I am pleased with the progress we have made in executing year one of the 3-year growth plan we outlined following our spinoff a year ago. We communicated and delivered against our 1st year goal of reversing the multi-year revenue declines and repositioning the Company for growth by re-engaging with the surgeon and distributor community and introducing innovative new products. I am equally excited about the highly motivated team of employees at SeaSpine who have been so instrumental to achieving this notable success against our objectives. During the past 12 months, we have taken steps to significantly expand and enhance our product portfolio through the launch of new spinal hardware and orthobiologics products. We have also significantly improved the efficiency and reliability of our manufacturing and supply chain processes and capacity. At the same time, we strengthened our financial position, renewed and expanded relationships with key distributors and increased our footprint into key regions. Looking ahead, the next goal in our 3-year plan is to generate sustained, single digit revenue growth. I am confident that we are already well underway towards reaching that milestone this year,” CEO Keith Valentine said in a prepared statement.
Despite the miss, shares are trading up for SeaSpine, now up 4% and trading at $10.14 as of 2:44 p.m. EDT.
The company reaffirmed guidance for its full fiscal year 2016, expecting to see revenue between $136 million and $140 million, up 2% to 5% over the full-year 2015.
SeaSpine was spun out last July, separated from Integra LifeSciences (NSDQ:IART).
Plainsboro, N.J.-based Integra revealed its plan to shed the spine business in November 2014, saying it planned for SeaSpine to become a stand-alone, publicly traded company to focus on its surgical solutions, orthopedics and tissue technology businesses.
Integra acquired SeaSpine for $89 million in 2011, doubling its distribution footprint and customer base in the U.S. spine market. SeaSpine co-founder and former CEO Kirt Stephenson is in line to be named chairman of the company’s latest iteration.
