K2M reports first quarter financial results for 2016

K2M Group Holdings Inc. reported its first-quarter financial results from 2016.

According to a company release, total revenue increased 11.7% year-over-year to $56.3 million compared with $50.4 million from the first quarter in 2015. Total revenue showed a 12.1% increase year-over-year on a constant currency basis.

“We are pleased with the solid start to fiscal 2016, particularly with the strong 20% sales growth in our U.S. business, which was fueled by the significant product innovation we introduced in 2015,” Eric Major, president and chief executive officer of the company, said in the release. “Our focus on innovation will continue as we execute toward our goal of obtaining regulatory clearance for five to eight strategically or commercially significant products and product line extensions again this year. Importantly, this commitment to innovation remains the foundation of the future growth of our company and gives us confidence in our ability to continue to gain market share.”

Gross profit increased 11.5% to 36.7 million compared with the first quarter in 2015. Operating expenses also increased $3.6 million within the first quarter of 2016 to $46.6 million. First-quarter loss from operations was $9.9 million compared with $10 million from 2015.

The net loss for the first quarter of 2016 was $10.2 million, or $0.25 per diluted share, according to the release, compared with $14.3 million, or $0.37 per diluted share, for the first quarter of 2015.

K2M expects the total revenue on an as-reported-basis to be between $231 million and $235 million, an increase of 7% to 9% year-over-year compared with previous expectations. The company reportedly expects the total net loss to be between $45 million and $47 million compared with $39.4 million in total net loss for the fiscal year 2015.

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