Sientra(US:SIEN)2023-08-11 21:07Financial Performance - Net sales increased by approximately $1.6 million, or 7.5%, to $23.1 million for the three months ended June 30, 2023, compared to $21.5 million for the same period in 2022, driven by increased domestic sales of gel implants and revenue from the new Viality product [147]. - Gross profit for the three months ended June 30, 2023, was $12.6 million, a slight decrease from $12.7 million in the same period of 2022 [146]. - Net sales increased approximately $2.8 million, or 6.5%, to $45.7 million for the six months ended June 30, 2023, compared to $42.9 million for the same period in 2022, driven by increased domestic sales of gel implants and revenue from the new product Viality [156]. - Gross margins for the six months ended June 30, 2023, were approximately 54.2%, down from 59.6% in 2022, primarily due to amortization of Viality-related manufacturing know-how intangible assets [158]. Operating Expenses - Cost of goods sold rose by approximately $1.7 million, or 19.9%, to $10.5 million for the three months ended June 30, 2023, primarily due to amortization of Viality-related manufacturing know-how and increased warranty provisions [148]. - Total operating expenses decreased to $19.7 million for the three months ended June 30, 2023, from $28.7 million in the same period of 2022, reflecting reduced sales and marketing, research and development, and general and administrative expenses [146]. - Total operating expenses decreased approximately $15.2 million, or 26.4%, to $42.4 million for the six months ended June 30, 2023, compared to $57.6 million for the same period in 2022 [155]. - Research and Development expenses decreased approximately $1.0 million, or 16.5%, to $5.1 million for the six months ended June 30, 2023, due to reduced costs related to regulatory activities and product development [160]. - General and Administrative expenses decreased approximately $5.1 million, or 22.8%, to $17.2 million for the six months ended June 30, 2023, primarily due to reductions in consulting and insurance fees [161]. Losses and Cash Flow - Loss from operations improved to $(7.1) million for the three months ended June 30, 2023, compared to $(15.9) million for the same period in 2022 [146]. - The company incurred net losses of $22.4 million and used $7.4 million of cash from continuing operations during the six months ended June 30, 2023 [165]. - Cash used in operating activities was $6.8 million for the six months ended June 30, 2023, a decrease from $30.8 million in the same period of 2022, reflecting improved working capital [170]. - As of June 30, 2023, the company had cash and cash equivalents of $18.6 million, raising substantial doubt about its ability to continue as a going concern for at least one year [165]. Strategic Developments - The company received FDA 510k clearance for the AlloX2 Pro Tissue Expander on June 8, 2023, which is now MRI-conditional, enhancing its market offering [122]. - The Portfinder technology, an electronic device for locating ports in tissue expanders, received FDA 510k clearance on May 17, 2023, improving usability for clinicians [123]. - The company entered into a partnership with Aziyo Biologics on March 22, 2023, to expand the distribution of SimpliDerm ADM products in the U.S. [124]. - Commercial shipping of the Viality fat transfer system began on March 1, 2023, following its acquisition in December 2021 [125]. - The company anticipates fluctuations in net sales due to seasonal trends in aesthetic procedures and ongoing macroeconomic conditions [131]. - The company is evaluating various cost-saving measures to reduce operating expenses and cash outflows, while also seeking to generate significant increases in net sales [166]. - The company plans to seek additional funding alternatives to improve liquidity, which may include raising equity or debt capital [166].