Sientra(SIEN) - 2021 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended March 31, 2021, were $23,236,000, an increase of 37.5% compared to $16,932,000 for the same period in 2020[143] - Gross profit for the three months ended March 31, 2021, was $12,301,000, compared to $10,140,000 for the same period in 2020, reflecting a gross margin improvement[143] - The loss from operations for the three months ended March 31, 2021, was $9,820,000, significantly improved from a loss of $27,006,000 in the same period in 2020[143] - Net sales increased by $6.3 million, or 37.2%, to $23.2 million for the three months ended March 31, 2021, compared to $16.9 million for the same period in 2020[144] Operating Expenses - Total operating expenses decreased to $22,121,000 for the three months ended March 31, 2021, from $37,146,000 in the same period in 2020, primarily due to reduced sales and marketing expenses[143] - Sales and marketing expenses decreased by $4.4 million, or 26.2%, to $12.4 million for the three months ended March 31, 2021, compared to $16.8 million for the same period in 2020[148] - General and administrative expenses decreased by $2.0 million, or 21.0%, to $7.4 million for the three months ended March 31, 2021, compared to $9.3 million for the same period in 2020[150] - Research and development expenses for the three months ended March 31, 2021, were $2,392,000, compared to $2,908,000 for the same period in 2020[143] - Research and development expenses decreased by $0.5 million, or 17.7%, to $2.4 million for the three months ended March 31, 2021, compared to $2.9 million for the same period in 2020[149] Cash Flow - Net cash used in operating activities was $12.7 million during the three months ended March 31, 2021, a decrease from $27.2 million during the same period in 2020[164] - Net cash provided by financing activities was $39.4 million during the three months ended March 31, 2021, compared to $52.8 million during the same period in 2020[166] - As of March 31, 2021, the company had $80.4 million in cash and cash equivalents[161] - The company completed a follow-on public offering of 5,410,628 shares of common stock at $6.75 per share, resulting in net proceeds of approximately $39.2 million[160] Business Developments - The company expects to recognize a loss between $2.5 million and $3.5 million related to the sale of the miraDry business, which is anticipated to close in the second quarter of 2021[121] - The miraDry business was sold for a purchase price of $10,000,000 in cash, subject to certain adjustments[120] - The company has eliminated its separate miraDry U.S. salesforce and transitioned sales responsibility into the Breast Products Business Development team[122] Market Conditions - The company continues to monitor the impact of the COVID-19 pandemic on its operations, which has significantly affected revenues since the second quarter of 2020[124] - The company anticipates fluctuations in net sales due to seasonality and the ongoing impact of the pandemic on aesthetic procedures[130] - Gross margin decreased to 52.9% for the three months ended March 31, 2021, down from 59.9% in the same period of 2020, primarily due to higher period costs in the miraDry segment[147] Future Outlook - The company anticipates that operating expenses will continue to decrease following the completion of the organizational efficiency initiative in 2020[155]