AxoGen, Inc. Reports 58% Year-Over-Year Revenue Growth for the 2015 First Quarter
Record Quarterly Revenue of $4.95 Million; Gross Margin at 80%
Conference Call Today at 4:30 p.m. ET
ALACHUA, FL - May 5, 2015 - AxoGen, Inc. (NASDAQ: AXGN), a leading medical technology company focused on the $1.6 billion peripheral nerve repair market, reported record revenue of $4.95 million for the first quarter ended March 31, 2015 compared to $3.14 million in the year-ago first quarter.
"The market's continued adoption of our proprietary portfolio of nerve repair products - Avance® Nerve Graft, AxoGuard® Nerve Connector and AxoGuard® Nerve Protector - and our solid sales execution delivered another record quarter with revenue increasing 58% year-over-year," commented Karen Zaderej, Chief Executive Officer. "Despite some negative effects of severe weather in January and February, this quarter continues our strong growth momentum of the last 2 years and is directly related to our focus on executing our sales and marketing strategy."
2015 First Quarter Financial Results
For the first quarter ended March 31, 2015, revenue totaled $4.95 million, a 58% increase compared to $3.14 million in the prior year first quarter. The Company reported gross margin expanded to 80.1% compared to 77.7% in the first quarter ended March 31, 2014. Net loss was $3.6 million, or $0.16 per share compared to a net loss of $4.2 million, or $0.24 per share in the year-ago first quarter. The weighted average common shares outstanding for the 2015 first quarter were approximately 22.5 million shares compared to 17.4 million shares in the 2014 first quarter.
As of March 31, 2015, cash and cash equivalents totaled $19.3 million which includes $13.6 million of net proceeds related to the public common stock offering in February.
Given the market's increasing awareness of AxoGen's product portfolio and the Company's plans to expand its sales footprint and sales pipeline, AxoGen is reaffirming its 2015 full year revenue outlook of at least $24 million with annual gross margin in the mid to high 70% range.
The Company will host a conference call and webcast for the investment community following the release at 4:30 PM ET. Investors interested in participating by phone are invited to call toll free at 1.877.407.0993 or use the direct dial-in number 1.201.689.8795. Those interested in joining via the webcast, should visit http://axogeninc.equisolvewebcast.com/q1-2015.
Following the conference call, a replay will be available on the Company's website at www.AxoGenInc.com, under 'Investors.'
About AxoGen, Inc.
AxoGen (NASDAQ: AXGN) is a leading medical technology company dedicated to peripheral nerve repair. AxoGen's portfolio of regenerative medicine products is available in the United States, Canada and several other countries and includes Avance® Nerve Graft, an off-the-shelf processed human 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 the nerve reconstruction while preventing soft tissue attachments.
Avance® Nerve Graft is processed in the United States by AxoGen. AxoGuard® Nerve Connector and AxoGuard® Nerve Protector are manufactured in the United States by Cook Biotech Incorporated, and are distributed worldwide exclusively by AxoGen. AxoGen maintains its corporate offices in Alachua, Florida and is the parent of its wholly owned operating subsidiary, AxoGen Corporation.
Cautionary Statement Concerning Forward-Looking Statements
This Press Release contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the closing of the over-allotment option and the AxoGen's proposed use of proceeds. 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", 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 our growth, our product development, product potential, or the intended use of proceeds from the offering. 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, except as required by law, AxoGen assumes no responsibility to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Lee Robert "Bob" Johnston, Chief Financial Officer
Released May 5, 2015