Sientra increases sales but legal settlement doubles losses
Sientra increased net sales more than 30 percent for its second quarter ended June 30 but net losses doubled to $20.4 million, or $1.07 per share.
The Goleta breast implant designer and manufacturer brought in $8.2 million in sales, up from $6.2 million for the second quarter of 2016, primarily for its breast products. Its new scar management product bioCorneum accounted for 15 percent of sales.
Operating expenses rose more than 75 percent to $25.76 million, primarily due to a $10 million legal settlement with its former manufacturer Silimed. Costs for sales, marketing, research and development slimmed, but general and administrative costs increased, and stock based compensation expenses also nearly doubled in the first half, compared to the same period last year, to $3.2 million.
The company closed its acquisition of Miramar Labs in July and expects to see revenues from its suite of products by 2018. It had $1.7 million in inventories for the first half of 2017, compared to $1.4 million for the first half of 2016.
“Looking ahead, I am confident that Sientra remains on track with both near and long term strategic initiatives to become a leader in the aesthetic space, and I am extremely excited to continue to build on our momentum across our newer segments as we move into 2018 and re-launch our breast implants following expected FDA approval of our facility by the end of the year,” Chairman and CEO Jeffrey Nugent said in an earnings release Aug. 9.
The company had cash and cash equivalents of $55.5 million, with $33.5 million in current liabilities. Shares ended the day up 7 cents to $11.12 and continued to rise 3 percent in after-hours trading.
• Contact Marissa Nall at mnall@pacbiztimes.com.
