NuVasive’s Q3 Net Sales Climb 1.5 Percent

Revenue is back on the rise at NuVasive Inc. Sales rose 1.5 percent (1.2 percent on a constant currency basis) to $295.3 million for the quarter ended Sept. 30.
 
The company’s GAAP operating margin was 9.2 percent for the third quarter; non-GAAP operating margin was 15.8 percent. 
 
“In the third quarter, NuVasive experienced faster-than-anticipated recovery from the impact of COVID-19 with net sales increasing year over year driven by high-single digit growth in our International business and further stability of the U.S. spine market,” said J. Christopher Barry, CEO of NuVasive. “The company remains focused in the fourth quarter on executing against its innovation roadmap, including the launch of our re-designed cervical portfolio, the furthering of our Advanced Materials Science implant portfolio with multiple new implants and executing on key Pulse milestones.” 
 
NuVasive announced in April 2020 that it had withdrawn its annual financial guidance due to the uncertainty related to COVID-19, and is not reinstituting its annual financial guidance for the remainder of the year.
 
For the third quarter 2020, both GAAP and non-GAAP gross profit was $210.6 million and GAAP and non-GAAP gross margin was 71.3 percent. These results compared to GAAP and non-GAAP gross profit of $213.8 million and GAAP and non-GAAP gross margin of 73.5 percent, for the third quarter 2019.
 
The company reported GAAP net income of $5.9 million, or diluted earnings per share of $0.11, for the third quarter 2020, compared to GAAP net income of $11 million, or diluted earnings per share of $0.21, for the third quarter 2019. On a non-GAAP basis, the company reported net income of $28.3 million, or diluted earnings per share of $0.55, for the third quarter 2020, compared to non-GAAP net income of $30.9 million, or diluted earnings per share of $0.59, for the third quarter 2019.

Gross profit fell 1.47 percent to $210,649. Research and development expenses jumped 12.4 percent.
 
The company ended the quarter with $982.1 million in cash and cash equivalents, and short term investments.