Amedica's Q2 revenue drops 16%, adds OEM partner: 8 things to know

Written by Laura Dyrda | August 11, 2016 | Print  |

Amedica reported decreased revenue in the second quarter of 2016 as compared to the same period last year.

Here are eight things to know:

 

1. Amedica's total product revenue was $4 million, a 16 percent decrease over the same period last year due to lower private label sales and weaker than expected commercial sales in key geographic regions. The company is currently employing a commercial sales expansion strategy.

 

2. The continued market pricing pressure and hospital vendor consolidation contributed to the lower revenue in the second quarter. The cost of revenue also decreased 25 percent.

 

3. The second quarter gross margins ended at 83 percent of total sales, compared to 78 percent last year, excluding the impact of excess or obsolete inventory for both periods.

 

4. The operating expense was down 8 percent in the second quarter due to decreased commissions from decreased sales.

 

5. Amedica's net loss was $5.1 million for the quarter, down from the $5.9 million in the same period last year. The gross profit improved and operating costs decreased during the quarter.

 

6. Cash and cash equivalents hit $5.2 million as of the end of June; operating cash burn was down to $2.4 million in the first half of the year.

 

7. Total principal debt obligations were $12.1 million as of June 30, 2016, down from $12.2 million at the same time last year.

 

8. The company added a new OEM partner that is exploring applications of Amedica's silicon nitride ceramic for dental implants.

 

"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 Chairman and CEO Dr. Sonny Bal. "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."

 

More articles on orthopedic implants:
Precision Spine to introduce MD-Vue Lateral Access System: 5 things to know
Spine Wave launches Velocity L Expandable Interbody Device & lateral system: 5 takeaways
North America to dominate global orthopedic software market: 5 observations

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