Alphatec Holdings, Inc. Discusses Pro Forma Revenues for Scient'X Merger and Stand-alone Revenue Guidance for the Remainder of 2
07 Oktober 2006 - 1:38AM
PR Newswire (US)
CARLSBAD, Calif., Oct. 6 /PRNewswire-FirstCall/ -- Alphatec
Holdings, Inc. (NASDAQ:ATEC), a spinal device company that provides
customized products and a broad suite of spine fusion solutions,
announced today that pro forma(1) June 30, 2006 six-month revenues
(combining Scient'X June 30, 2006 revenues with Alphatec June 30,
2006 revenues) were $58.8 million, which reflects an approximate 85
percent increase over the 2005 pro forma year. Management considers
that the combination will establish the combined entity as the
world's largest stand-alone spinal fusion and motion preservation
implant company. Based on preliminary financial information,
Alphatec expects that its stand-alone revenue will be approximately
$17.3 million for the third quarter of 2006, which would represent
50 percent revenue growth over the third quarter of 2005. Annual
2006 revenue for Alphatec is currently estimated to be
approximately $72 million, which would represent a 70 percent
increase over 2005. Commenting on the preliminary third quarter
revenues, President and Chief Executive Officer Ronald G. Hiscock
said, "We have made great progress thus far in 2006 in terms of the
execution of our business plan and transformation of the Company
into a recognized leader in the industry. While our third quarter
revenues came in shy of our original expectations, we are confident
that these results were related principally to a sales force
reorganization that occurred in July, and a slower than expected
revenue ramp among newer distributors and recently hired direct
sales professionals. The third quarter results and fourth quarter
expectations reflect significant growth from the prior year and we
expect that the consummation of the combination with Scient'X will
provide the Company with greatly enhanced opportunities for rapid
revenue growth and cross selling in 2007." Mr. Hiscock continued,
"The Scient'X transaction introduces our surgeon customers in the
U.S. to a vast array of widely used and anticipated technologies
that substantially augment our own fusion product line. We believe
that all of the Scient'X products already cleared for sale in the
U.S. can be readily assimilated into the Alphatec sales and
distribution infrastructure and we are developing a pre-closing
plan to implement the sale of those products in the U.S. as soon as
practicable. Importantly, out of the 25 products in the global
Scient'X portfolio, 18 address new categories not currently covered
by Alphatec's existing products thereby more than doubling the
Alphatec product offering." Alphatec management believes that the
combination of the two companies provides one of the broadest
ranges of spinal fusion and motion preservation implants and
products to its surgeon customer base. Broad Product Offering
Fusion Dyn Disc Nucleus/ Interspin. Bio- MIS Eur Asia Stab- Arth.
Annulus Spacer logics alize COMBINED X X X R&D R&D X
R&D X X ALPHATEC SPINE INC X X R&D X SCIENT'X X X X R&D
R&D X X X The revenues and projections announced by Alphatec
today are preliminary and are subject to revision based on
management's and Alphatec's independent auditors' completion of
customary quarter and year-end closing and audit procedures.
Alphatec plans to release unaudited financial results for its third
quarter 2006 in early November. Alphatec plans to release audited
financial results for its 2006 calendar year in March 2007.
Investors and security holders are advised to read the proxy
statement/prospectus regarding the proposed Scient'X transaction
when it becomes available, because it will contain important
information. Such proxy statement/prospectus will be filed with the
Securities and Exchange Commission by Alphatec. Investors and
security holders may obtain a free copy of the proxy
statement/prospectus (when available) and other documents filed by
Alphatec at the Securities and Exchange Commission's web site at
http://www.sec.gov/. The proxy statement/prospectus and such other
documents may also be obtained from Alphatec by directing such
request to Allen & Caron, Inc., 18300 Von Karman, Suite 410,
Irvine, California 92612, Attn: Matt Clawson, tel: 949-474-4300;
e-mail: . About Alphatec Alphatec is a medical device company
focused on the design, development, manufacturing and marketing of
products for the surgical treatment of spine disorders. Alphatec's
principal product offerings are primarily focused on the U.S. spine
fusion market, which is estimated to approach $3 billion in 2007,
through its wholly-owned subsidiary, Alphatec Spine, Inc., and
include a variety of spinal implant products and systems comprised
of components such as spine screws, spinal spacers, and plates that
offer multiple solutions to address patients' needs. In addition to
Alphatec's U.S. presence, it also participates in the Japanese
spine fusion and orthopedic trauma markets through its subsidiary,
Alphatec Pacific, Inc. Alphatec's mission is to be a values-based
leader in the spinal device market by providing unmatched service
to and taking scientific direction from our surgeon customers. It
does so through its unique in-house manufacturing facility in
Carlsbad, California that allows it to respond quickly to surgeon
needs and to customize innovative products needed for spine fusion
surgery. Forward Looking Statements This press release may contain
forward-looking statements that involve risks and uncertainty. Such
statements are based on management's current expectations and are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. Alphatec cautions investors that there
can be no assurance that actual results or business conditions will
not differ materially from those projected or suggested in such
forward-looking statements as a result of various factors,
including, but not limited to, the following: Alphatec's ability to
maintain its level of previously reported sales growth, Alphatec's
and Scient'X's ability to achieve the pro-forma sales growth set
forth in this press release, Alphatec's ability to develop and
expand its spine fusion business in the United States and Japan,
Alphatec's ability to expand and maintain a successful sales and
marketing organization, continuation of favorable third party payor
reimbursement for procedures performed using our products,
unanticipated expenses or liabilities or other adverse events
affecting cash flow or Alphatec's ability to achieve profitability,
uncertainty of additional funding, uncertainty of success in
developing any new products, failure to successfully introduce and
develop new products, including products related to license
agreements, failure to obtain FDA clearance or approval for
particular devices, Alphatec's ability to compete with other
competing products and with emerging new technologies within and
outside of spinal fusion, product liability exposure, patent
infringement claims, claims related to its intellectual property,
that Alphatec's lower than expected results in the third quarter
were related principally to a sales force reorganization and a
slower than expected revenue ramp among newer distributors and
recently hired direct sales professionals, that the consummation of
the combination with Scient'X will provide greatly enhanced
opportunities for rapid revenue growth and cross selling in 2007,
that Alphatec will be able to implement a pre-closing plan to sell
Scient'X products in the U.S. in a timely manner, that Alphatec and
Scient'X will be the world's largest stand-alone spine implant
company, that Scient'X's revenues will continue to grow at its
prior levels, that Alphatec will be able to successfully combine
the operations and product lines of the two companies, that
synergies of the business combination will develop, that Alphatec
will gain access to international markets and physicians in those
markets as a result of the Scient'X transaction, and that the sales
and distribution channel of the combined enterprise will
successfully sell and market the Scient'X products in the U.S.
Please refer to the risks detailed in Alphatec's Form S-1 on file
with the SEC, as well as the risks detailed from time to time in
Alphatec's SEC reports, including quarterly reports on Form 10-Q,
reports on Form 8-K and annual reports on Form 10-K. Alphatec
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, unless required by law. (1) Pro forma
is defined as if the two companies were merged on January 1 of a
given period at an assumed exchange rate of Euros/$1.28. Investor
Relations: Alphatec Holdings, Inc.: Matt Clawson Ronald G. Hiscock
Allen & Caron, Inc. President and Chief Executive Officer (949)
474-4300 John C. McCormick (212) 810-4737 DATASOURCE: Alphatec
Holdings, Inc. CONTACT: Investors, Matt Clawson of Allen &
Caron, Inc., +1-949-474-4300, , for Alphatec Holdings, Inc.; or
Ronald G. Hiscock, President and Chief Executive Officer, or John
C. McCormick, both of Alphatec Holdings, Inc., +1-212-810-4737
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