Sientra(US:SIEN)2021-08-10 20:16Business Operations - The company completed the sale of the miraDry business on June 10, 2021, for an aggregate purchase price of $10.0 million, resulting in net cash proceeds of approximately $11.3 million after adjustments[127]. - The Plastic Surgery segment, formerly known as Breast Products, is the sole operating segment following the sale of miraDry[124]. - As of June 30, 2021, the direct sales organization for the Plastic Surgery segment consisted of 63 employees, including 8 sales managers[125]. - The company recognized a loss on the sale of the miraDry business amounting to $2.5 million for the three and six months ended June 30, 2021[127]. Financial Performance - Net sales increased by $10.8 million, or 116.0%, to $20.1 million for the three months ended June 30, 2021, compared to $9.3 million for the same period in 2020[151]. - Cost of goods sold rose by $4.8 million, or 118.4%, to $8.8 million for the three months ended June 30, 2021, compared to $4.0 million for the same period in 2020[153]. - Gross margin for the three months ended June 30, 2021, was 56.0%, down from 56.5% in 2020, primarily due to lower margins on international gel implant sales[154]. - Sales and marketing expenses increased by $5.0 million, or 92.5%, to $10.5 million for the three months ended June 30, 2021, compared to $5.4 million for the same period in 2020[155]. - Research and development expenses increased by $0.3 million, or 13.6%, to $2.4 million for the three months ended June 30, 2021, compared to $2.1 million for the same period in 2020[156]. - General and administrative expenses increased by $0.6 million, or 8.7%, to $7.5 million for the three months ended June 30, 2021, compared to $6.9 million for the same period in 2020[157]. - Net loss for the three months ended June 30, 2021, was $20.1 million, compared to a net loss of $34.3 million for the same period in 2020[150]. Cash Flow and Liquidity - As of June 30, 2021, the company had $82.4 million in cash and cash equivalents[181]. - The company anticipates needing to raise additional equity or debt capital to fund ongoing operating and capital needs[182]. - Net cash used in operating activities decreased to $14.8 million for the six months ended June 30, 2021, from $31.5 million in the same period of 2020, reflecting improved operational efficiency[184]. - Net cash used in investing activities increased to $3.2 million in the first half of 2021, compared to $2.1 million in the same period of 2020, primarily due to higher property and equipment purchases[185]. - Net cash provided by financing activities rose to $34.4 million for the six months ended June 30, 2021, up from $33.0 million in 2020, driven by increased proceeds from common stock issuance and borrowings[186]. - Cash provided by discontinued operations was $11.1 million in the first half of 2021, compared to a cash outflow of $15.2 million in the same period of 2020, due to changes in business strategy and proceeds from the sale of the miraDry business[187]. - The company’s liquidity position is influenced by factors such as manufacturing capacity, sales performance, and costs associated with product development and regulatory compliance[188]. - The company anticipates potential short-term capital needs for expenditures related to sales and marketing efforts, new product development, and facilities expansion[189]. - Future liquidity and capital funding requirements may be affected by operational cash generation and potential need for additional equity or debt financing[189]. Impact of COVID-19 - The company expects net sales to fluctuate quarterly due to factors such as seasonality of breast augmentation procedures and the ongoing impact of the COVID-19 pandemic[137]. - The COVID-19 pandemic has significantly impacted revenues since Q2 2020, with ongoing restrictions likely to continue affecting future revenues[132]. - The company continues to monitor the economic impact of COVID-19 on its operations and the aesthetics market[134].