Alphatec Holdings Inc. (ATEC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Alphatec Holdings Inc. has a market cap of $200.8 million; its shares were traded at around $2.3 with and P/S ratio of 1.52.
Asia revenues were $6.0 million for the three months ended September 30, 2010 compared to $3.0 million for the three months ended September 30, 2009, representing an increase of $3.0 million, or 99.7%. The increase was primarily due to the addition of our new Scientx products ($1.7 million), increased volume in the Alphatec sales channels, ($1.0 million), and the favorable effect of foreign currency exchange rates ($0.3 million).
$5.2 million in product costs associated with the increased sales volume and addition of Scientx products, increased instrument depreciation costs of $0.9 million based on a larger installed surgical instruments asset base, sales milestone accruals of $0.5 million, and inventory step-up expenses of $0.4 million related to the Scientx acquisition, offset by decreases of $0.8 million in royalty expenses due primarily to the expiration of the certain patents and $0.7 million in amortization costs due to the full amortization of older intangible assets.
Gross profit. Gross profit was $28.9 million for the three months ended September 30, 2010 compared to $20.1 million for the three months ended September 30, 2009, representing an increase of $8.8 million, or 44.1%. The increase of $8.8 million is comprised of $3.5 million of gross profit from our new Scientx products, $0.5 million from gross profit in the Alphatec Europe sales channels, $3.9 million from gross profit in the Alphatec U.S. sales channels and $0.9 million from gross profit in the Alphatec Asia sales channels. Gross margin of 64.5% of revenues for the three months ended September 30, 2010 decreased 2.2 percentage points from the three months ended September 30, 2009 of 66.7%.
Sales and marketing expense. Sales and marketing expense was $17.1 million for the three months ended September 30, 2010 compared to $12.1 million for the three months ended September 30, 2009, representing an increase of $5.0 million, or 41.1%. The increase was primarily related to expenses related to increased European sales and marketing activities ($2.3 million), increases in expenses in the Alphatec Asian subsidiary ($0.5 million) and higher U.S. commission expense of $1.2 million due to the higher U.S. sales volume and increased personnel, marketing and consulting expenses ($1.0 million).
General and administrative expense. General and administrative expense was $7.9 million for the three months ended September 30, 2010 compared to $3.9 million for the three months ended September 30, 2009, representing an increase of $4.0 million, or 103.7%. The increase was primarily related to increased European general and administrative activities ($1.9 million), increases in expenses in the Alphatec Asian subsidiary ($0.2 million) and increases in U.S. general and administrative expenses of $1.9 million. $1.2 million of the $1.9 million increase in U.S. expenses is attributed to the absence of a benefit recognized in 2009 which was related to a reduction of $1.2 million in legal expenses related to the settlement of a litigation matter. The remaining $0.7 million increase is primarily related to increased regulatory, integration costs and other administrative costs, partially offset by a decrease in legal and litigation expenses.
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Alphatec Holdings Inc. has a market cap of $200.8 million; its shares were traded at around $2.3 with and P/S ratio of 1.52.
Highlight of Business Operations:
Revenues. Revenues were $44.8 million for the three months ended September 30, 2010 compared to $30.1 million for the three months ended September 30, 2009, representing an increase of $14.7 million, or 49.0%. The increase of $14.7 million is comprised of $9.9 million of sales from our new Scientx products, $1.3 million from sales in the Alphatec Europe sales channels, $2.2 million from sales in the Alphatec U.S. sales channels and $1.3 million from sales in the Alphatec Asia sales channels.Asia revenues were $6.0 million for the three months ended September 30, 2010 compared to $3.0 million for the three months ended September 30, 2009, representing an increase of $3.0 million, or 99.7%. The increase was primarily due to the addition of our new Scientx products ($1.7 million), increased volume in the Alphatec sales channels, ($1.0 million), and the favorable effect of foreign currency exchange rates ($0.3 million).
$5.2 million in product costs associated with the increased sales volume and addition of Scientx products, increased instrument depreciation costs of $0.9 million based on a larger installed surgical instruments asset base, sales milestone accruals of $0.5 million, and inventory step-up expenses of $0.4 million related to the Scientx acquisition, offset by decreases of $0.8 million in royalty expenses due primarily to the expiration of the certain patents and $0.7 million in amortization costs due to the full amortization of older intangible assets.
Gross profit. Gross profit was $28.9 million for the three months ended September 30, 2010 compared to $20.1 million for the three months ended September 30, 2009, representing an increase of $8.8 million, or 44.1%. The increase of $8.8 million is comprised of $3.5 million of gross profit from our new Scientx products, $0.5 million from gross profit in the Alphatec Europe sales channels, $3.9 million from gross profit in the Alphatec U.S. sales channels and $0.9 million from gross profit in the Alphatec Asia sales channels. Gross margin of 64.5% of revenues for the three months ended September 30, 2010 decreased 2.2 percentage points from the three months ended September 30, 2009 of 66.7%.
Sales and marketing expense. Sales and marketing expense was $17.1 million for the three months ended September 30, 2010 compared to $12.1 million for the three months ended September 30, 2009, representing an increase of $5.0 million, or 41.1%. The increase was primarily related to expenses related to increased European sales and marketing activities ($2.3 million), increases in expenses in the Alphatec Asian subsidiary ($0.5 million) and higher U.S. commission expense of $1.2 million due to the higher U.S. sales volume and increased personnel, marketing and consulting expenses ($1.0 million).
General and administrative expense. General and administrative expense was $7.9 million for the three months ended September 30, 2010 compared to $3.9 million for the three months ended September 30, 2009, representing an increase of $4.0 million, or 103.7%. The increase was primarily related to increased European general and administrative activities ($1.9 million), increases in expenses in the Alphatec Asian subsidiary ($0.2 million) and increases in U.S. general and administrative expenses of $1.9 million. $1.2 million of the $1.9 million increase in U.S. expenses is attributed to the absence of a benefit recognized in 2009 which was related to a reduction of $1.2 million in legal expenses related to the settlement of a litigation matter. The remaining $0.7 million increase is primarily related to increased regulatory, integration costs and other administrative costs, partially offset by a decrease in legal and litigation expenses.
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