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Nuvectra Reports First Quarter 2016 Financial Results

PLANO, Texas, May 11, 2016 (GLOBE NEWSWIRE) -- Nuvectra Corporation (NVTR), a neurostimulation medical device company, announced today financial results for the first quarter ended April 1, 2016.

Recent Accomplishments & Highlights

  • Completed spin-off from Greatbatch, Inc. on March 14, 2016
  • Initiated U.S. commercial launch of Algovita® Spinal Cord Stimulation System (“Algovita”) and first patients implanted in April 2016
  • Entered into $45.0 million credit facility

Scott Drees, Chief Executive Officer of Nuvectra, said, “We completed several important milestones in the first quarter, highlighted by the commercial launch of Algovita in the United States. While it is still early in the launch, we have been pleased with our ability to recruit high quality, experienced sales representatives, and remain focused on building and training a world-class sales organization. We have also been encouraged by initial physician interest in the innovative technologies of Algovita, highlighted by its powerful implantable pulse generator, industry-first stretchable leads, and discrete patient controller.”

Mr. Drees added, “During the quarter we also completed our spin-off from Greatbatch with initial funding of $75 million and an expansive intellectual property portfolio, we became a publicly-traded company and we enhanced our balance sheet with a new credit facility. Overall, we are excited about our position in the market, the strong commercial opportunity in spinal cord stimulation, and potential to leverage our platform into new markets.”

Financial Results

Total revenue in the first quarter of 2016 was $2.1 million, a 76% increase from $1.2 million in the first quarter of 2015. The increase reflects a higher volume of component sales from the Company’s NeuroNexus subsidiary and revenue related to the Company’s partnership with Aleva Neurotherapeutics, S.A, which is focused on developing the Company’s Algovita platform into a complete system for use in deep brain stimulation for the treatment of Parkinson’s Disease. The Company initiated the U.S. commercial launch of Algovita for the treatment of chronic pain of the trunk and/or limbs during the first quarter of 2016, and the first patient implants occurred in April 2016.

Gross profit in the first quarter of 2016 was $1.0 million, or 49% gross margin, an increase from $0.2 million, or 14% gross margin, in the first quarter of 2015. The increase in gross margin reflects a shift in mix toward higher margin products and services as well as pricing improvements under our supply agreement with Greatbatch for Algovita.

Operating expenses in the first quarter of 2016 were $8.1 million, a 42% increase from $5.7 million in the first quarter of 2015. The increase reflects investments in the Company’s sales and marketing and research and development teams, along with higher headcount related to becoming a public company and the commercial launch of Algovita.

Net loss for the first quarter of 2016 was $(7.1) million or $(0.70) per share, compared with net loss of $(5.5) million, or $(0.54) per share, for the first quarter of 2015.

Total cash and cash equivalents were $90.3 million as of April 1, 2016, compared to $0.2 million as of January 1...