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Alphatec Holdings Inc. (ATEC) filed Quarterly Report for the period ended 2011-09-30.
Alphatec Holdings Inc. has a market cap of $192.7 million; its shares were traded at around $2.16 with and P/S ratio of 1.1.
This is the annual revenues and earnings per share of ATEC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ATEC.
Highlight of Business Operations:
Cost of revenues. Cost of revenues was $17.0 million for the three months ended September 30, 2011 compared to $15.5 million for the three months ended September 30, 2010, representing an increase of $1.5 million, or 9.4%. The increase was the result of greater costs for Alphatec products due to growth in sales and variation in product mix ($0.8 million), unfavorable manufacturing and absorption variances related to production volume and operational costs ($2.7 million), increase amortization expense related to acquired technology ($0.2 million), offset by a reduction in inventory step-up expense related to the Scient’x acquisition of ($0.4 million), and lesser product costs due to reduced Scient’x sales ($1.8 million).U.S. revenues were $101.1 million for the nine months ended September 30, 2011 compared to $87.8 million for the nine months ended September 30, 2010, representing an increase of $13.3 million, or 15.2%. The growth was due to increased sales of Alphatec products of $11.6 million from instruments and implants ($8.8 million) and Biologics ($2.8 million). Sales of Scient’x products represent an increase of $1.7 million.
International revenues were $47.1 million for the nine months ended September 30, 2011 compared to $37.8 million for the nine months ended September 30, 2010, representing an increase of $9.3 million, or 24.6%. The growth was due to increased sales of Alphatec products of $6.9 million, offset by $1.8 million for the recognition of deferred revenue in 2010 related to a European sale that was not repeated in 2011. Sales of Scient’x products represent an increase of $4.2 million. The increase in revenues is inclusive of $4.3 million in favorable exchange rate effect.
Cost of revenues. Cost of revenues was $55.0 million for the nine months ended September 30, 2011 compared to $43.5 million for the nine months ended September 30, 2010, representing an increase of $11.4 million, or 26.3%. The increase was primarily related to greater product costs due to growth in sales and variation in product mix ($2.7 million), an increase due to inventory write-offs resulting from the redesign of a deployment mechanism and the associated instrumentation ($2.1 million), an increase in instrument depreciation costs based on a larger installed base of surgical instruments ($1.0 million), unfavorable manufacturing and absorption variances related to production volume and operational costs ($4.0 million), offset by royalty and sales milestone accruals due to sales mix and timing of contractual obligations ($2.0 million), a decrease in amortization expense related to acquired technology ($0.2 million), and a reduction in inventory obsolescence expense ($0.5 million). Our costs for Scient’x products for the nine months ended Setpember 30, 2011 was $4.3 million higher than such product costs for the nine months ended September 30, 2010 as we sold Scient’x products for the full nine months of 2011 as compared to only six months in 2010.
General and administrative expense. General and administrative expense was $26.7 million for the nine months ended September 30, 2011 compared to $21.5 million for the nine months ended September 30, 2010, representing an increase of $5.2 million, or 24.2%. The increase was primarily a result of an expanded administrative structure to drive sales growth in both the U.S. and International regions. Specifically, increased expenses resulted from European general and administrative activities in support of the Scient’x products ($1.8 million), human resources ($1.3 million), finance and accounting ($0.4 million), information technology ($0.4 million), legal ($1.1 million), and an increase in other administrative costs ($0.2 million).
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