TranS1 cuts 3Q revenue goal on weak AxiaLIF sales

WILMINGTON, N.C. (AP) — Spinal device maker TranS1 Inc. cut its third-quarter revenue forecast on Tuesday, saying sales were hurt by concerns about insurance reimbursement for its AxiaLIF lumbar fusion device.

TranS1 now expects revenue of $6.8 million to $6.9 million, down from a previous forecast of $7.4 million to $7.9 million. Analysts, on average, had been expecting sales of $7.7 million, according to a Thomson Reuters poll.

TranS1 reported $6 million in revenue in the third quarter of 2008, and the new outlook implies growth of about 15 percent.

AxiaLIF helps surgeons gain access to the lumbar vertebrae, allowing them to perform fusion operations without cutting through muscle or ligaments. The company said it is disappointed with the product's sales results, and is working to increase education and support for AxiaLIF among current and potential customers.

TranS1 shares closed at $4.63 Tuesday, down 4.1 percent, and tumbled 43 cents, or 9.3 percent, to $4.20 in after-hours trading.