TranS1’s Gloomy Q2 Financials

In short

If you search our pages you’ll find we’ve covered spine company TranS1 Inc., fairly extensively over the past year, most recently within the last couple of weeks as the company announced the results from its comparative lumbar interbody fusion study which were promising if somewhat inconclusive. Now the company has released its financial data for the second quarter and the picture looks a bit gloomy as sales revenues showed a 35% year on year decrease, a lower gross margin and an overall loss $2M worse than a year ago.

Background

Figures comparing Q2 2012 with the equivalent period a year ago show:

Total revenue down from $ 5.3m to $3.5m

Net loss up from $4.3m to $6.3m

U.S Domestic revenues down from $4.9m to $3.2 m

Gross margin down from 78% to 73.6%

Company comments

“In the second quarter we continued to make good progress on our key operational goals and are building the foundation necessary to achieve market penetration and future revenue growth as we gain the AxiaLIF Category I code in 2013,” said Ken Reali, President and Chief Executive Officer of TranS1. “I am encouraged by the improving reimbursement coverage for our AxiaLIF products, the early success of the VEO direct lateral system as well as the expanding body of peer-reviewed clinical evidence supporting our products.”

Source: TranS1 Inc., Globe Newswire