Orthovita Books a 37% Pop in Sales and 83% Gross Margins. Can Break-even be far off?
BY EDITOR, AUGUST 25, 2003
For the June quarter, Orthovita reported a 37% YOY jump in sales to $3.7 million. Gross margins were a stellar 83%. But losses for the quarter came in at $2.3 million (down from the prior year's $3.0 million loss for the same period). Operating expenses stayed flat at approximately $3.2 million.
Sales of Vitoss (the company's synthetic bone void fill) and Imbibe (the company's bone marrow aspirating system) continue to gain share and adherents and drove sales into the $15 million annualized level.
Break-even for the company may still be as much as a year away. With operating expenses running at $3.2 million a quarter, revenues may have to reach $20 million on an annualized basis to bring the company to profitability.
During the quarter, the company sold an additional 4.9 million shares to bring $12.5 million in new equity into the company. Cash stands at approximately $25 million currently.
Cortoss® the company's load bearing but flowable material that appears particularly well suited for vertebral compression fractures, is selling in Europe and is in the final stages of clinical trails in the U.S. Can Orthovita bring to the U.S. market a viable alternative to PMMA? It's possible, even likely. Stay tuned.
