Surgalign (Nasdaq:SRGA) shares ticked up slightly today on mixed fourth-quarter results.
Shares of SRGA rose 0.1% at $1.65 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 0.88%.
The Deerfield, Illinois-based spine surgery tech company posted losses of $39 million in the quarter. That amounts to $5.77 per share on sales of $20.57 million for the three months ended Dec. 31, 2022.
Surgalign recorded a 13.8% bottom-line gain while remaining in the red on a sales decline of 5.8%.
Adjusted to exclude one-time items, losses per share totaled $1.22. That was ahead of Wall Street estimates of losses of $1.80 per share. Sales landed shy of expectations, as analysts projected $20.67 million in revenue for the quarter.
Surgalign attributed its revenue dip to market and economic conditions in the U.S. and abroad. The company also enacted a restructuring plan that included layoffs announced in November.
Read here about all the latest layoff news around the medtech industry.
“I’m very proud of the team as we continue to transform our business and realign both products and resources, working productively with our customers throughout,” said Terry Rich, Surgalign president and CEO. “We are focused on becoming a leader in digital health, through both commercialization of new products and ongoing technology innovation. During the first quarter, we enhanced our HOLO Portal surgical guidance system and launched HOLO AI Insights, broadening our future offering and market potential.
“We believe our AI platform is leading the market and has the potential to drive better patient outcomes.”
Surgalign declined to provide financial guidance for 2023. However, it noted that it continues to implement a review of its organizational structure, including processes and costs. It expects to achieve its target of cash savings of between $30 million and $35 million in 2023 compared to 2022.
Combined with the cash from the sale of its Coflex products to Xtant Medical earlier this year, Surgalign believes it has the cash on hand to fund itself into the fourth quarter of this year.