Sientra shares up on news of earnings, new CEO
Goleta-based medical and surgical device company Sientra saw total net sales drop in the third quarter and a net loss of $5.8 million, or 12 cents per share, though the company said its financial performance improved in key areas.
The company released its quarterly report on Nov. 9, the same day it named a new CEO. Sientra’s stock shot up after the two pieces of news, closing at $5.27 on Nov. 10, 10.9 percent higher than the day before, with its highest trading volume since May.
The net loss for Sientra’s third quarter was almost 75% lower than it was in the third quarter of 2019, when Sientra posted a $22.4 million net loss, or about 45 cents per share. Total net sales decreased 14%, from $22.4 million to $19.2 million in a year, but net sales for Sientra’s breast products segment rose 21%, going from $12.6 million to $15.3 million in the same time.
While net sales from Sientra’s miraDry segment dropped a dramatic 60%, going from $9.8 million to $3.9 million from the third quarter of 2019 to the third quarter of 2020, the company’s gross profit only dropped about 15%. Operating expenses also decreased by about 27%, and the company received permission to sell Sientra in Japan during its third quarter.
“Sientra recorded exceptional
results in Q3, posting 54% sequential quarter over quarter sales growth … despite
the strong headwinds our business and the industry have faced from COVID-19,”
Jeff Nugent, Sientra’s chairman and CEO, said in the company’s earnings release. “The third quarter represented significant improvement in net sales in our Breast Products segment. Our pivot to focus increasingly on our breast business has been validated by our third quarter results and has put us in a position of strength as we continue to take share from competitors.”
On the same day Sientra released its earnings report, Nugent announced he was stepping down from his role. Nugent, who has led the company since 2015, is being replaced by two people. Ron Menezes, the former president and general manager for Almirall, will join the company as president and CEO, while Caroline Van Hove, a current Sientra Director, will succeed Nugent as executive board chair.
“Jeff leaves Sientra with a firm foundation in place, strong momentum and an increased focus on breast products that will allow us to continue to deliver additional value for stakeholders,” Van Hove said in a news release. “Words cannot express what he has meant to our emergence as a leader. We will miss Jeff’s leadership and constant presence and look forward to Ron leading Sientra into a new chapter of anticipated high growth.”