Highlights: Third quarter revenues increased 15% to $6.9 million 729 TranS1 procedures performed globally in the quarter Gross margin was 80.2% for the quarter GAAP loss per share was $0.27 for the quarter Non-GAAP loss per share was $0.24 for the quarter
WILMINGTON, N.C., Oct. 29, 2009 (GLOBE NEWSWIRE) — TranS1 Inc. (Nasdaq:TSON – News), a medical device company focused on designing, developing and marketing products that implement its proprietary minimally invasive surgical approach to treat degenerative disc disease and instability affecting the lower lumbar region of the spine, today announced its financial results for the third quarter ended September 30, 2009.
Revenues were $6.9 million in the third quarter of 2009, representing a 15% increase over revenues of $6.0 million in the third quarter of 2008. Gross margin was 80.2% in the third quarter of 2009 as compared to 83.2% in the third quarter of 2008. Gross margin in the third quarter included a non-recurring charge of approximately $125,000 related to inventory obsolescence. Excluding this charge, gross margin would have been 82.0%.
Operating expenses were $11.2 million in the third quarter of 2009 compared to $10.4 million in the third quarter of 2008. The increase in operating expenses is primarily attributable to an increase in sales and marketing costs as a result of the continued expansion of the direct sales force, increased commissions as a result of increased sales and increased spending for research and development.
Net loss was $5.6 million and $4.8 million for the quarters ended September 30, 2009 and 2008, respectively. GAAP net loss per common share was $0.27 in the third quarter of 2009 compared to a net loss per share of $0.23 in the third quarter of 2008.
For the quarters ended September 30, 2009 and 2008, on a non-GAAP basis adjusting for non-cash stock compensation expense, net loss per common share was $0.24 and $0.20, respectively.
Cash, cash-equivalents and investments were $61.3 million as of September 30, 2009.
“Our results this quarter were impacted by continuing uncertainty in the marketplace surrounding reimbursement for our AxiaLIF procedure, which we are addressing with increased education and support resources for our current and prospective surgeon users,” said Rick Randall, President and CEO of TranS1. “We remain confident in our products, clinical benefits and prospects for future growth as the market for minimally invasive spine surgery continues to expand.”