Looking ahead for fiscal year 2009, the company re-affirmed its guidance of earnings per share positive by the third quarter of 2009. The company also raised its revenue guidance to a range of $125 million to $128 million from its previous guidance in the range of $123 million to $125 million.

First Quarter 2009 Highlights:

US revenue growth of 27.7% over prior year was about three times greater than US spine market growth

European revenue of $1.0 million reported in the first quarter 2009

Adjusted EBITDA reached $1.4 million in the first quarter 2009, reflecting strong operating leverage.

Raising 2009 revenue guidance to a range of $125 million to $128 million from previous guidance of $123 million to $125 million. Raising 2009 adjusted EBITDA guidance to a range of $12.5 million to $14.5 million from previous guidance of $12 million to $14 million. Re-affirming EPS guidance of EPS positive by the third quarter of 2009.

Continued investment to expand our Aging Spine and core product portfolio. Acquired proprietary technology to treat lumbar spinal stenosis, stand-alone interbody technology to treat degenerative conditions and distribution rights for a tissue-based invivo wound covering product.

Today we proudly announced our seventh consecutive quarter of record revenues and continued strong year-over-year growth. Despite economic uncertainty we continue to expand both our revenue base and market share through the strength of our core spinal product offerings and improving distribution network, stated Dirk Kuyper, Alphatec’s president and chief executive officer. Kuyper continued, We are particularly pleased with our ability to demonstrate operating leverage, as evidenced by positive adjusted EBITDA reported in the first quarter of 2009, while continuing to invest in a robust product development pipeline. Lastly, I am pleased to see both our international market segments perform well as we experience expanded adoption of our product portfolio in both Asia and Europe.

First Quarter 2009 Financial Results

US revenues for the first quarter 2009 were $23.8 million, Up 27.7% from the $18.6 million reported for the first quarter of 2008 and Up 8.3% over fourth quarter 2008. Asia revenues for the first quarter 2009 were $5.8 million, Up 28.1% from the $4.6 million reported for the first quarter 2008. European revenues for the first quarter 2009 were $1.0 million. There were no European revenues for the first quarter 2008.

Consolidated gross profit for the first quarter 2009 was $19.8 million, Up $4.5 million over first quarter 2008 of $15.3 million. First quarter 2009 gross margin of 64.6% improved over the 59.2% gross margin reported in the fourth quarter of 2008, and was lower than first quarter 2008 gross margin of 66.0%. The decrease in gross margin was primarily due to affect of certain royalty expenses that we did not have in the first quarter of 2008 and higher depreciation expenses on our growing installed surgical instrument base, partially offset by improved manufacturing efficiencies. First quarter 2009 gross margin of 70.8% for the US was improved over fourth quarter 2008 US gross margin of 63.7%, and was lower than first quarter 2008 US gross margin of 73.2%.

Total operating expenses for the first quarter 2009 were $22.9 million, down $8.3 million compared to first quarter 2008 of $31.2 million. The decrease was primarily due to $11.0 million in litigation settlement expense incurred in first quarter 2008 partially offset by increased sales and marketing expenses in the first quarter of 2009.

Research and development expenses for the first quarter 2009 were $2.9 million, down $0.3 million compared to the first quarter 2008 of $3.2 million. The decrease in expenses was primarily due to in-house consolidation of previously out-sourced prototyping and other development activities.

Sales and marketing expenses for the first quarter 2009 were $12.8 million, Up $2.7 million compared to the first quarter 2008 of $10.1 million. The increase was primarily due to an increase in sales commission expenses related to increased US sales volume and increased sales expenses in Asia.

General and administrative expenses for the first quarter 2009 were $6.0 million, Up $0.4 million, compared to the first quarter 2008 of $5.6 million. The increase was primarily due to increased legal fees and expenses related to maintaining and expanding our patent portfolio.

Adjusted EBITDA of $1.4 million was reported for the first quarter 2009 compared to negative ($0.8) million for the first quarter 2008.