DJO Global Inc., a medical device company in San Diego, announced its third-quarter financial results and its plan to exit the Empi business.
The company reported a net loss of $177.8 million, up from a net loss of $21.2 million in the same period last year. The loss includes $164.9 million of non-cash impairment charges associated with the loss of the Empi brand’s strong reputation and other intangible assets, according to a company spokesperson.
“The challenging coverage and reimbursement environment has continued to drive the Recovery Sciences business downward, primarily due to lower sales of Empi products,” said Mike Mogul, DJO Global’s CEO, in a statement. “As a result of these ongoing challenges and despite our actions to improve this business over the past few years, we do not expect the sales and profitability of Empi’s products to return to acceptable levels and therefore have developed a plan to exit the Empi business over the next several months.”
The company reported net sales of nearly $300 million for the third quarter, down from $305.5 million in the same period last year.
DJO Global is a private company with public debt.