Implant Sales Lift DJO’s Second-Quarter Sales

DJO Global Inc. reported an uptick in second-quarter (ended June 28) sales. The company makes medical device solutions for musculoskeletal health, vascular health and pain management.

Sales for the second quarter of 2014 were $313.9 million, up 6.5 percent, compared with net sales of $294.7 million for the second quarter of 2013. Net sales for the second quarter of 2014 were favorably impacted by $2.5 million related to changes in foreign currency exchange rates compared to the rates in effect in the second quarter of 2013, officials said. Excluding the impact of changes in foreign currency exchange rates from rates in effect in the prior year period (constant currency), net sales for the second quarter of 2014 increased 5.8 percent compared to net sales for the second quarter of 2013.

For the second quarter of 2014, DJO reported a net loss of $25.4 million, compared to a net loss of $20.8 million for the second quarter of 2013.

“An ever-growing slate of new products, combined with strong global commercial execution, continues to drive momentum across most of our businesses,” said Mike Mogul, DJO’s president and CEO. “I want to especially congratulate our Bracing & Vascular, Surgical Implant and International teams, for delivering strong constant currency growth in the second quarter of 2014 of 7.6 percent, 17.3 percent and 7.5 percent, respectively, as compared to the prior year period. We also saw our Recovery Sciences business begin to bounce-back to flat growth after being impacted by Medicare’s 2012 non-coverage decision related to Transcutaneous Electrical Nerve Stimulation (TENS) for chronic low back pain (CLBP). We believe that the successful launch of a number of MotionCare products to patients, combined with having reached the anniversary date of Medicare’s non-coverage decision for TENS for CLBP late in the second quarter of 2014, will improve the future sales growth results for this segment.”

Net sales for DJO’s Bracing and Vascular segment were $128.3 million in the second quarter of 2014, reflecting growth of 7.6 percent, compared to the second quarter of 2013, driven by strong contribution from the sales of new products and improving sales execution.

Net sales for DJO’s Recovery Sciences segment were $75.9 million in the second quarter of 2014, reflecting a contraction of 1.9 percent, compared to the second quarter of 2013, primarily due to the effects of the Medicare CLBP decision on the EMPI business unit.

Second quarter net sales within the International segment were $84.6 million, reflecting an increase in constant currency net sales of 7.5 percent from the second quarter of 2013, excluding the impact of $2.5 million of favorable changes in foreign currency exchange rates from rates in effect in the second quarter of 2013.

Net sales for the Surgical Implant segment were $25.1 million for the second quarter of 2014, reflecting growth of 17.3 percent over net sales in the second quarter of 2013, driven by strong sales of each of the company’s shoulder, knee and hip product lines.

DJO is based in San Diego, Calif.