TranS1 Trims Third Quarter Outlook

TranS1 Inc. (TSON - Snapshot Report) has announced that it expects revenues to be approximately $6.8 million to $6.9 million in the third quarter of 2009 compared to $6 million reported in the year-ago quarter. Results for the quarter are expected to be released on Oct 29, 2009. 

While revenues are expected to increase from the year-ago period, they are still predicted to be lower than the previous guidance of $7.4 million to $7.9 million. The lower guidance is primarily based on weak sales of the company’s AxiaLIF lumbar fusion device due to insurance reimbursement concerns. 

However, management considers these low revenues as a short-term event and is confident about long-term growth primarily due to the expanding minimally invasive spine surgery market. 

TranS1 is working on educating existing and potential customers about the utilities of the AxiaLIF lumbar fusion device to increase its sales. The device allows surgeons access to the lumbar vertebrae, thereby enabling them to perform fusion operations without cutting through muscle or ligaments. 

TranS1 is a medical device company focused on designing, developing and marketing products that use its proprietary minimally invasive surgical approach to treat degenerative disc disease affecting the lower lumbar region of the spine. It currently markets two single-level fusion products, AxiaLIF and AxiaLIF 360°, and a two-level fusion product, the AxiaLIF 2L, in the US and Europe. 

Founded in May 2000 and headquartered in Wilmington, North Carolina, TranS1 competes mainly with Stryker Corp. (SYK - Analyst Report).