October 29, 2013,RTI Surgical saw a $16.1 million boost in revenue in the third quarter from its acquisition of Pioneer Surgical Technology, but the combined company underperformed compared with the same period a year ago and saw a net loss in income.
The Alachua surgical implant company reported $54.7 million in revenues, including $16.1 million from Pioneer from the sale’s close on July 16 to Sept. 30, a 23 percent increase over the $44.6 million in revenues in the third quarter of 2012. However, revenues would have been down 12 percent if Pioneer’s entire third-quarter revenues for both years had been included.
RTI reported a net loss of $9.1 million for the quarter, or $0.16 per fully diluted share, compared with net income of $2.8 million, or $0.05, a year ago.
President and CEO Brian Hutchison said in a news release that revenues were lower than projected because of lower-than-expected spine implant sales, uncertainties surrounding an October 2012 warning letter from the Food and Drug Administration and surgeons’ subsequent shift to alternative products, slower-than-expected new direct surgical specialities sales and lower revenues in international sales because of tissue shortages.
The FDA letter regarded concerns uncovered during an inspection of the Alachua facility. RTI has since been given a clean bill of health after an inspection during the most recent quarter.
Hutchison said RTI is working diligently to rebuild business lost during the year and to gain new customers, and is in the early stages of realizing cross-distribution opportunities from integrating Pioneer.
RTI trades on the Nasdaq stock exchange under the symbol RTIX. The former RTI Biologics took the name RTI Surgical after acquiring Pioneer Surgical and adding metal and synthetic implants to its line of implants manufactured from human donor and animal tissue.