Amedica Corporation (NASDAQ:AMDA), a company that develops and commercializes silicon nitride ceramics as a biomaterial platform, today announced financial results for the second quarter ended June 30, 2016.
Recent Company Highlights
- Decreased year-to-date operational cash burn by 55%
- Completed $12.7 million public offering and reduced total debt principal balance to $10 million
- Submitted response to FDA in support of its application seeking clearance to commercialize its composite cervical interbody fusion device
- Featured unique silicon nitride attributes in several leading industry events and publications
- Signed an additional joint development agreement with an implant designer and distributor of dental technologies
“Despite the decrease in commercial sales this quarter, we are confident with our commercial sales strategy targeted at adding new surgeons and distributors and expanding our sales into new territories,” said Dr. Sonny Bal, Chairman and Chief Executive Officer. “We expect that the solid foundation of scientific and clinical data that we have now built will also help expand spine sales and further strengthen our balance sheet.”
“In the product pipeline, we have added a new OEM partner with whom we’re exploring the application of our silicon nitride ceramic for use in dental implants; this announcement comes after recent evidence that silicon nitride is effective against bacteria that cause gingivitis. We believe that our silicon nitride ceramic is the best-characterized biomaterial available and offers a compelling set of advantages for a variety of medical applications. Even as we explore mid-term opportunities with external partners, we will remain focused on driving our commercial sales,” added Dr. Bal.
Second Quarter 2016 Financial Results
Total product revenue was $4.0 million in the second quarter of 2016 as compared to $4.8 million in the same period of 2015, a decrease of $0.8 million, or 16%. This decrease was due to lower private label sales during the quarter and weaker than expected commercial sales in a key geographic region during the implementation of the Company’s commercial sales expansion strategy. We expect that our commercial sales expansion strategy will be substantially completed during the third quarter with benefits expected to be realized during the fourth quarter of 2016 and into 2017. The decrease in revenue for the second quarter 2016 was also attributable, in part, to continued market pricing pressure and hospital vendor consolidation.
Cost of revenue decreased $0.3 million, or 25%, as compared to the same period in 2015. The decrease in cost of revenue was primarily due to the decline in product sales. Excluding the impact of excess or obsolete inventory for both periods, second quarter 2016 gross margins ended at 83% of total sales, as compared to 78% during the prior year period. The increase in gross margins as a percentage of sales is primarily attributable to lower private label sales, which have lower gross margins, and to a lesser extent, the impact of the medical device excise tax moratorium.
Operating expenses decreased $0.5 million, or 8%, as compared to the same period in 2015. This decline in operating expenses is primarily due to a decrease of $0.3 million in commissions as a result of decreased sales and a $0.2 million decrease in personnel related expenses.
Net loss for the second quarter 2016 was $5.1 million, compared to a net loss of $5.9 million in the prior-year period. The reduction in net loss was primarily the result of improved gross profit and decreases in operating costs and other expenses during the quarter.
Adjusted EBITDA, which is defined as earnings before deductions for interest, taxes, depreciation, amortization, non-cash stock compensation expense, change in fair value of derivative liabilities, offering costs, loss on extinguishment of derivative liabilities and loss on extinguishment of debt for the second quarter 2016 was a loss of $1.9 million, compared to a loss of $2.0 million for the second quarter 2015.
Cash and cash equivalents totaled $5.2 million as of June 30, 2016. Operating cash burn decreased to $2.4 million for the six months ended June 30, 2016 as compared to $5.3 million the prior year period, or 55%. Total principal debt obligations were $12.1 million as of June 30, 2016, a decrease of $12.2 million from June 30, 2015. (Original Source)
Shares of Amedica closed today at $0.75 , down $0.021 or -2.67%. AMDA has a 1-year high of $9.60 and a 1-year low of $0.74. The stock’s 50-day moving average is $0.96 and its 200-day moving average is $1.60.
Amedica Corp. operates as a commercial biomaterial company that focuses on using its silicon nitride technology platform to develop, manufacture and sell a broad range of medical devices. It currently markets spinal fusion products and are developing products for use in total hip and knee joint replacements. The company market a complementary line of non-silicon nitride spinal fusion products which allows it to provide surgeons and hospitals with a broader range of products. These products include three lines of spinal fusion devices and five types of orthobiologics, which are used by surgeons to help promote bone growth and fusion in spinal fusion procedures.