Alphatec Holdings Inc. (ATEC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Alphatec Holdings Inc. has a market cap of $297.21 million; its shares were traded at around $5.49 with and P/S ratio of 2.25. ATEC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Cost of revenues. Cost of revenues was $14.5 million for the three months ended March 31, 2010 compared to $10.8 million for the three months ended March 31, 2009, representing an increase of $3.7 million, or 33.6%. The increase was primarily due to $2.7 million in product costs associated with the increased sales volume, increased depreciation costs of $0.7 million based on a larger installed surgical instruments asset base, higher amortization expenses of $0.1 million related to new intangible assets and increased royalty payments of $0.2 million associated with the increased sales volume.
Gross profit. Gross profit was $24.0 million for the three months ended March 31, 2010 compared to $19.8 million for the three months ended March 31, 2009, representing an increase of $4.2 million, or 21.2%. Gross margin of 62.4% of revenues for the three months ended March 31, 2010 decreased 2.2 percentage points from the three months ended March 31, 2009 of 64.6%.
In-process research and development. In-process research and development expense was $0.5 million for the three months ended March 31, 2010 compared to $1.3 million for the three months ended March 31, 2009. In the three months ended March 31, 2010, we incurred expenses of $0.5 million related to our acquisition of technology related to stem cells. In the three months ended March 31, 2009, we incurred costs related to our acquisition of technology related to a stand-alone interbody device of $0.5 million, $0.6 million related to our acquisition of technology related to a device for the treatment of spinal stenosis ($0.25 million in cash and $0.35 million in stock (174,129 shares)), and $0.2 million combined for three smaller in-process research and development collaborations with third parties.
Sales and marketing. Sales and marketing expense was $13.8 million for the three months ended March 31, 2010 compared to $12.8 million for the three months ended March 31, 2009, representing an increase of $1.0 million, or 7.8%. The increase was primarily due to higher commission expense of $0.2 million due to the higher U.S. sales volume and an increase of $0.8 million in various sales and marketing expenses.
General and administrative. General and administrative expense was $5.6 million for the three months ended March 31, 2010 compared to $6.0 million for the three months ended March 31, 2009, representing a decrease of $0.4 million, or 5.3%. The decrease was primarily related to a reduction of outside patent fees and legal fees.
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Alphatec Holdings Inc. has a market cap of $297.21 million; its shares were traded at around $5.49 with and P/S ratio of 2.25. ATEC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenues. Revenues were $38.4 million for the three months ended March 31, 2010 compared to $30.6 million for the three months ended March 31, 2009, representing an increase of $7.8 million, or 25.6%. U.S. revenues increased $4.6 million, or 19.4%, primarily due to increased sales of our Zodiac, Illico, Novel and Trestle product lines. In addition, Asia revenues increased $0.3 million, or 4.6%, due to both sales volume, ($0.1 million), and the favorable affect of foreign currency exchange rates. We recognized revenue of $3.9 million for European revenue during the three months ended March 31, 2010 compared to $1.0 million for the three months ended March 31, 2009. The increase in European revenues is primarily due to our expanded distribution network and increased sales in our Zodiac, Illico and OsseoFix product lines.Cost of revenues. Cost of revenues was $14.5 million for the three months ended March 31, 2010 compared to $10.8 million for the three months ended March 31, 2009, representing an increase of $3.7 million, or 33.6%. The increase was primarily due to $2.7 million in product costs associated with the increased sales volume, increased depreciation costs of $0.7 million based on a larger installed surgical instruments asset base, higher amortization expenses of $0.1 million related to new intangible assets and increased royalty payments of $0.2 million associated with the increased sales volume.
Gross profit. Gross profit was $24.0 million for the three months ended March 31, 2010 compared to $19.8 million for the three months ended March 31, 2009, representing an increase of $4.2 million, or 21.2%. Gross margin of 62.4% of revenues for the three months ended March 31, 2010 decreased 2.2 percentage points from the three months ended March 31, 2009 of 64.6%.
In-process research and development. In-process research and development expense was $0.5 million for the three months ended March 31, 2010 compared to $1.3 million for the three months ended March 31, 2009. In the three months ended March 31, 2010, we incurred expenses of $0.5 million related to our acquisition of technology related to stem cells. In the three months ended March 31, 2009, we incurred costs related to our acquisition of technology related to a stand-alone interbody device of $0.5 million, $0.6 million related to our acquisition of technology related to a device for the treatment of spinal stenosis ($0.25 million in cash and $0.35 million in stock (174,129 shares)), and $0.2 million combined for three smaller in-process research and development collaborations with third parties.
Sales and marketing. Sales and marketing expense was $13.8 million for the three months ended March 31, 2010 compared to $12.8 million for the three months ended March 31, 2009, representing an increase of $1.0 million, or 7.8%. The increase was primarily due to higher commission expense of $0.2 million due to the higher U.S. sales volume and an increase of $0.8 million in various sales and marketing expenses.
General and administrative. General and administrative expense was $5.6 million for the three months ended March 31, 2010 compared to $6.0 million for the three months ended March 31, 2009, representing a decrease of $0.4 million, or 5.3%. The decrease was primarily related to a reduction of outside patent fees and legal fees.
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