Surgalign Holdings (SRGA) Tops Q3 EPS by 5c, Revenues Beat

Surgalign Holdings (NASDAQ: SRGA) reported Q3 EPS of ($0.11), $0.05 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $27.9 million versus the consensus estimate of $24.85 million.

Highlights:

• Completed of Acquisition of Holo Surgical Inc. and its ARAI™ Digital Surgery Platform
• Classified divestiture of OEM businesses as discontinued operations assets held for sale at July 20th, 2020 and reported as discontinued operations in the financial results for current and prior periods
• Total global spine revenue of $27.9 million, compared to $28.7 million in the third quarter of 2019
• Net loss from continuing operations of $26.7 million inclusive of approximately of $18.5 million of non-recurring charges
• Adjusted EBITDA loss of $6.3 million, compared to $11.6 million in the third quarter of 2019

“The company made significant progress during the third quarter. We focused Surgalign as a stand-alone global spine company through the completion of the sale of the OEM business in July, we assembled a world-class team with successful track records in the spine market, we formulated our long-term strategy, and completed an acquisition to capitalize on our vision for the future of digital spine surgery,” said Terry Rich, President and Chief Executive Officer of Surgalign Holdings. “Not only were we able to strategically and operationally manage through a significant amount of change in such a short period of time, but we were also able to generate strong sequential improvement in revenue over the second quarter despite the challenging global environment. We plan to leverage the strong momentum we have generated to further improve the business during the balance of 2020 and into the future through our strategy of build, innovate, and acquire.”

Business Outlook

Due to the inability to estimate the size and impact of the COVID-19 pandemic on the Company’s operations and financial results, Surgalign Holdings, Inc. is not providing guidance for fiscal 2020. We will continue to evaluate the impact of COVID-19 pandemic on our operations and financial results and will provide additional information when we are more certain.

For earnings history and earnings-related data on Surgalign Holdings (SRGA) click here.

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