Sientra loses $10 million in third quarter
Sientra reported a net loss of $10 million for the third quarter of 2016, ended Sept. 30, and announced the acquisition of a new line of products.
Sales for the Goleta-based breast implant manufacturer fell from $9.9 million in the third quarter of 2015 to $6.5 million this quarter, while operating expenses rose 15.3 percent. The company also acquired a portfolio of tissue expanders from Victor, Mont.-based Specialty Surgical Products for $5 million in cash, with a possible $2 million payable for reaching revenue milestones.
“We are making steady progress in transitioning our business back on a path toward historical levels of revenue and growth and we remain committed to our long term goal of creating a world class, diversified aesthetics organization,” Chairman and CEO Jeffrey Nugent said in a news release.
The increase in operating expenses is attributable to legal costs related to the $10.9 million preliminary settlement agreement between Sientra and shareholders who sued the company over the timing of Sientra’s public offering in September 2015.
The company had $79.3 million in cash and cash equivalents for the third quarter, with no outstanding debts, and expects to pay only $1.6 million of the final settlement amount, with the rest covered by insurance.
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