"We achieved record revenue in the first quarter 2013 as a result of our ongoing commercialization strategies for our unique peripheral nerve repair products." -- AxoGen CEO Karen Zaderej
Alachua, FL (PRWEB) April 30, 2013
First Quarter 2013 Highlights:
- Revenues increased 29.6% to $2.14 million
- Gross profit increased 30.4% to $1.58 million
- Gross margin remained strong at 73.9%, up 50 basis points
- Appointed Shawn McCarrey as Senior Vice President of Sales
AxoGen, Inc. (OTCBB: AXGN) a leading regenerative medicine company focused on the commercialization of proprietary products and technologies for peripheral nerve reconstruction and regeneration, announced financial results for the first quarter ended March 31, 2013.
Karen Zaderej, Chief Executive Officer of AxoGen, said, “We achieved record revenue in the first quarter 2013 as a result of our ongoing commercialization strategies focused on expanding usage within our current key accounts and increasing the number of surgeons and facilities using our unique peripheral nerve repair products. During the quarter we were a first-time exhibitor at the American Association of Orthopedic Surgeons Annual Meeting and sponsored peer-to-peer education events at other medical conferences including the American Association for Hand Surgery and the American Society for Peripheral Nerve.” Ms. Zaderej continued, “Our efforts were enhanced by the presentation of new data by study investigators in the Ranger® Registry, an ongoing multi-center registry for peripheral nerve repair. Finally, during the quarter we worked to target key new accounts and welcomed Shawn McCarrey as the leader of our U.S. sales organization. All of these activities contributed to record sales in the first quarter 2013 and position us well for future growth.”
Revenues for the first quarter 2013 were $2.14 million, up 29.6% compared to $1.65 million in the first quarter 2012, driven by an increase in the number of facilities utilizing the Company’s products and increased penetration of existing accounts.
Gross profit for the first quarter 2013 was $1.58 million, up 30.4% compared to $1.21 million in the first quarter 2012. Gross profit margin for the first quarter 2013 was 73.9%, up 50 basis points compared to 73.4% in the first quarter 2012. The year-over-year improvement in gross profit and gross margin was primarily attributable to revenue growth, manufacturing efficiencies and a product price increase instituted in March 2013, partially offset by an increase in the inventory reserve.
Total operating expenses in the first quarter 2013 were $3.91 million, up 23.8% compared to $3.16 million in the first quarter 2012. As a percentage of revenues, operating expenses were down 8.6% in the first quarter 2013 as compared to the same period in 2012, demonstrating improved operating leverage relative to revenue growth in the quarter.
First quarter 2013 sales and marketing expense was $1.89 million, up 16.3% compared to $1.63 million in the first quarter 2012. The increase was primarily attributable to the expansion of the Company’s marketing efforts and direct sales force.
First quarter 2013 general and administrative expense was $1.61 million, up 30.5% compared to $1.23 million in the first quarter 2012. The increase was primarily attributable to increased salaries and benefits, public company expenses, travel and other general expenses.
First quarter 2013 research and development expense was $0.41 million, up 37.5% compared to $0.30 million in the first quarter 2012. The increase was primarily attributable to costs associated with the Company’s investment in clinical studies that support the use and regulatory position of the Company’s products.
Loss from Operations and Net Loss
Operating loss in the first quarter 2013 was $2.32 million, compared to $1.94 million in the first quarter 2012. Net loss in the first quarter 2013 was $3.44 million, or ($0.31) per share, compared to net loss of $2.11 million, or ($0.19) per share, in the first quarter 2012.
As of March 31, 2013, the Company had $11.20 million in cash and cash equivalents and approximately $22.44 million in long-term note payable – revenue interest purchase agreement.
AxoGen, Inc. management will host a conference call and webcast to review the first quarter 2013 financial results on Wednesday, May 1, 2013 at 10:00 am ET. The conference call and webcast information is as follows:
Conference dial-in: 877-709-8150
International dial-in: 201-689-8354
Conference Name: AxoGen First Quarter 2013 Financial Results
Conference ID: 00413262
Conference Call Webcast: http://www.axogeninc.com/investors.html
Following the live conference call and webcast, a replay will be available on the investor relations section of the Company’s website, http://www.axogeninc.com/investors.html.
About AxoGen, Inc.
AxoGen (AXGN) is a regenerative medicine company dedicated to advancing the science and commercialization of peripheral nerve repair solutions. The Company’s innovative approach to regenerative medicine has resulted in first-in-class products that will define their product categories. AxoGen’s products offer a full suite of surgical nerve reconstruction solutions including Avance® Nerve Graft, the only commercially available processed nerve allograft for bridging severed nerves without the comorbidities associated with a second surgical site, AxoGuard® Nerve Connector, a porcine submucosa extracellular matrix (“ECM”) coaptation aid for tensionless repair of severed nerves, and AxoGuard® Nerve Protector, a porcine submucosa ECM product used to wrap and protect injured peripheral nerves and reinforce coaptation sites while preventing soft tissue attachments. For more information, visit our website at http://www.axogeninc.com.
AxoGen is the parent of its wholly owned operating subsidiary, AxoGen Corporation. AxoGen’s principal executive office and operations are located in Alachua, FL.
Cautionary Statements Concerning Forward-Looking Statements
This Press Release contains “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or predictions of future conditions, events or results based on various assumptions and management’s estimates of trends and economic factors in the markets in which we are active, as well as our business plans. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “projects”, “forecasts”, “continue”, “may”, “should”, “will” variations of such words and similar expressions are intended to identify such forward-looking statements. The forward-looking statements may include, without limitation, statements regarding product development, product potential, financial performance, sales growth, product adoption, market awareness of our products and data validation. The forward-looking statements are subject to risks and uncertainties, which may cause results to differ materially from those set forth in the statements. Forward-looking statements in this release should be evaluated together with the many uncertainties that affect AxoGen’s business and its market, particularly those discussed in the risk factors and cautionary statements in AxoGen’s filings with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those projected. The forward-looking statements are representative only as of the date they are made, and AxoGen assumes no responsibility to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Greg Freitag, Chief Financial Officer