Alphatec Q4 Net Loss Widens; Agrees With OrthoTec To Settle Litigation

(RTTNews) - Alphatec Holdings, Inc. (ATEC) reported a net loss for the fourth quarter of $60.4 million or $0.62 per share, compared to a net loss of $5.4 million, or $0.06 per share for the year-ago quarter.

Excluding items, adjusted loss for the fourth quarter was $0.02 per share, compared to an adjusted loss of $0.01 per share in the prior year quarter.

Net revenues for the fourth quarter rose 1% to $53.1 million $52.7 million a year ago.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.02 per share on revenue of $52.50 million for the fourth quarter.

Looking forward, the company anticipates annual 2014 revenues of $208 million to $215 million. Analysts currently expect the company to post revenue of $213.25 million for the full year 2014.

Separately, Alphatec said that it has entered into a binding term sheet to settle the OrthoTec, LLC vs. Surgiview S.A.S. legal matter.

The settlement will result in mutual releases of all claims and the dismissal of the case in the Superior Court of California, Los Angeles County and all other related litigation matters involving the Company, its directors and affiliates.

Under the terms of the settlement, Alphatec has agreed to pay OrthoTec $49 million over the next 7 years in cash, with an initial cash payment of $17.5 million. The remaining $31.5 million will be paid to OrthoTec in installments of $1.1 million paid quarterly, beginning in the fourth quarter of 2014. In addition, a 7% simple interest rate will accrue on the unpaid portion of the $31.5 million. All accrued interest is not payable until the $49 million is paid, and such accrued interest shall be paid in $1.1 million installments each quarter.

The parties anticipate entering into a long-form agreement that complies with the term sheet.