TranS1, Inc. (TSON) Monday reported a wider loss for the fourth quarter, hurt mainly by higher costs and operating expenses. The company has also issued an outlook for its first quarter, which is currently below analysts' expectations.
Net loss for the quarter widened to $12.0 million or $0.44 per share from $4.9 million or $0.18 per share in the same period last year.
Adjusted loss for the period was $5.3 million or $0.20 per share. On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues totaled $4.1 million, up 3.5 percent from $3.99 million last year. Analysts expected revenues of $3.82 million.
Cost of revenues increased to $1.56 million from $1.04 million last year. Operating expenses jumped to $14.54 million from $7.86 million last year.
Looking ahead to the first quarter, the company has forecast revenues in the range of $3.0 million to $3.4 million. Analysts currently expect first-quarter revenues of $4.05 million.
The company also announced an agreement to acquire Baxano, Inc., a privately-held medical device company based in San Jose, California. Under the terms of transaction, TranS1 Inc. will pay $550 thousand in cash and issue approximately 10.4 million shares of its common stock.
The company is also intending to refinance $3.0 million of existing debt of Baxano in the transaction at closing.
On a pro-forma basis, current TranS1 shareholders will own approximately 72.4 percent of the combined company, while 27.6 percent will be owned by Baxano shareholders.
Contemporaneously with the execution of the agreement, TranS1 has agreed to offer approximately 7.5 million shares at a price of $2.28 per share. The offering will generate proceeds of approximately $17.2 million.
The transaction is expected to close early in the second quarter, subject to shareholder approval and customary conditions to closing as detailed in the agreement.
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