Revenue during the quarter grew 9.91 percent to $61.88 million from $56.31 million in the previous year period. Gross margin for the quarter expanded 11 basis points over the previous year period to 65.29 percent. Operating margin for the quarter stood at negative 14.66 percent as compared to a negative 17.63 percent for the previous year period.

Operating loss for the quarter was $9.07 million, compared with an operating loss of $9.93 million in the previous year period.

Adjusted EBITDA for the quarter stood at negative $0.34 million compared to negative $1.08 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 0.54 percent for the quarter compared to negative 1.92 percent in the last year period.

“We have made significant progress during the first four months of 2017, driving toward our fiscal year growth objectives and achieving multiple operational milestones, which together will enhance our ability to increase our share of the global spine market over time. We reported constant currency revenue growth of 10.7% year-over-year in the first quarter, driven by 10% growth in the U.S. and 14.4% constant currency growth in our international markets,” said president and chief executive officer, Eric Major. “We delivered strong revenue growth in the U.S. in the first quarter, which represents solid performance in light of the 20% U.S. growth we reported in the same period last year, and we continue to believe in our ability to grow U.S. revenue in the mid-teens in 2017. Outside the U.S., we continue to see progress in both Australia and Japan that is in line with our goal of creating a solid foundation for future growth in each of these markets. In April, we announced a new supply agreement with our Australian partner, LifeHealthcare. Later in April, we received product registrations in Japan, that we now control, for key products including our MESA and EVEREST systems. With these registrations, K2M will have an opportunity to implement a new distribution strategy in the entire spine surgery market in Japan.”

K2M GROUP HOLDINGS projects revenue to be in the range of $263 million to $270 million for financial year 2017. For fiscal year 2017, K2M GROUP HOLDINGS expects net loss to be in the range of $34 million to $31 million.

The company has spent $4.67 million cash to meet investing activities during the quarter as against cash outgo of $7.43 million in the last year period.

Cash flow from financing activities was $2.52 million for the quarter, down 53.01 percent or $2.84 million, when compared with the last year period.

Cash and cash equivalents stood at $38.58 million as on Mar. 31, 2017, up 82.18 percent or $17.40 million from $21.18 million on Mar. 31, 2016.

Working capital increases
K2M Group Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $110.45 million as at Mar. 31, 2017, up 16.15 percent or $15.35 million from $95.09 million on Mar. 31, 2016. Current ratio was at 3.43 as on Mar. 31, 2017, up from 3.21 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 105 days for the quarter from 257 days for the last year period. Days sales outstanding went down to 62 days for the quarter compared with 65 days for the same period last year.

Days inventory outstanding has decreased to 133 days for the quarter compared with 294 days for the previous year period. At the same time, days payable outstanding went down to 90 days for the quarter from 101 for the same period last year.