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MiMedx Group: Mimedx Announces First Quarter Of 2016 Revenue Results $53.4 MILLION Q1 2016 REVENUE IS 31% INCREASE OVER Q1 2015 Marietta, Georgia

The following excerpt is from the company's SEC filing.

, April 10, 2016, (PR Newswire) -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading regenerative medicine company utilizing human amniotic tissue and patent-protected processes to develop and market advanced products and therapies for the Wound Care, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic, and Dental sectors of healthcare, announced today its revenue results for the first quarter of 2016.

First Quarter 2016 Revenue Highlights

Q1 2016 revenue of $53.4 Million is 31% increase over Q1 2015 revenue

Surgical, Sports Medicine and Orthopedics (SSO) revenue grew 28% over Q1 2015
< br>Wound Care revenue grew 32% over Q1 2015

The Company recorded record revenue for the 2016 first quarter of $53.4 million, a $12.6 million or 31% increase over 2015 first quarter revenue of $40.8 million.

Parker H. “Pete” Petit, Chairman and CEO, said, “We are disappointed that our revenue fell short of our forecasted guidance by about two million dollars. After seventeen straight quarters of meeting or exceeding our revenue guidance, we had our first miss. Three key issues contributed to our first quarterly revenue shortfall. The principal one of these was the initial effects that our installation of a very sophisticated Sales Management System (SMS) had on our sales organization. The second issue related to our first quarter movement and realignment of certain sales management to prepare our surgical business for more autonomous growth. The last of the contributing issues was the distraction to our core business resulting from the initial assimilation of Stability Biologics into the organization.”

“I would like to emphasize that these first quarter issues resulting in our lower than expected revenues are not competitive related or systemic to advanced wound care or our SSO business. They were the consequence of our own initiatives to make changes in order to continue orderly growth in the future. These initiatives created issues having temporary effects. At this stage of our growth, it was imperative that we put in place a sophisticated and highly metrics driven SMS,” added Petit.

Bill Taylor, President and COO, commented, “The confluence of all of these changes simply reduced our sales organization’s productivity. The implementation of a much more sophisticated SMS had the normal flaws associated with such an installation, which slowed down a number of the ordering processes. In addition, our initiative to split our two sales organizations required that our sales persons “tag” all orders in the new SMS. There were some initial flaws in the tagging process, which caused confusion and distraction from day to day sales activities. We made progress toward resolving issues as they were presented, but these conditions ultimately were relatively disruptive to our order flow.”

“I classify our first quarter issues as ‘growing pains' that we had to endure because the size of our sales organization now requires very sophisticated and timely reporting. The good news is that we have built our SMS around and our own customized applications specifically focused on what we want to achieve in the advanced wound care sector. We believe this new system will be extremely effective in helping us manage the complexities of our wound care markets. Moving forward, we believe it will also enhance our sales management capabilities for our surgical products. The new...