04.08.15
Salt Lake City, Utah-based Amedica Corporation, which makes silicon nitride ceramics and a biomaterial platform, released its financial results for the fourth quarter and full year ending Dec. 31, 2014.
Total product revenue increased 2 percent in 2014 to $22.8 million, compared with $22.3 million in 2013. Executives attributed the spike to a 41 percent jump ($3.2 million) in silicon nitride ceramic product revenue over the prior-year period due to increased market adoption of the Valeo spinal interbody devices and the company’s focus on its core silicon nitride technology.
Gross profit for 2014 totaled $14.9 million, compared with $15.3 million in 2013. Gross margin percentage for 2014 was 65 percent, compared with 68 percent in 2013. Excluding the impact of excess or obsolete inventory for both years, 2014 gross margins improved 3 percentage points to 77 percent, compared with the previous year, due to production efficiencies and quality improvements.
Net loss for 2014 was $32.6 million, compared with $8.3 million the previous year, primarily as a result of a non-cash stock compensation expense of approximately $10.2 million, higher operating expenses, increased interest expense, a loss on the extinguishment of debt and offering costs incurred during the year.
Sonny Bal, M.D., chairman and CEO of Amedica, called the year “remarkable,” adding that he is “proud of the significant achievements our dedicated team has accomplished to-date, as we seek to leverage the opportunities these achievements provide throughout the balance of this year.”
Cash and cash equivalents totaled $18.2 million, while total principal debt obligations were $24.5 million as of Dec. 31, 2014.
Amedica maintained its previous estimates of increasing 2015 silicon nitride sales this year by 30 to 40 percent, thus equating to a total annual revenue range of $23 million to $24 million. Additionally, the company expects the impact from previously announced financial and operational alignment actions to deliver $6 million to $8 million of annualized operating profit benefit beginning in Q1 2015.
Total product revenue increased 2 percent in 2014 to $22.8 million, compared with $22.3 million in 2013. Executives attributed the spike to a 41 percent jump ($3.2 million) in silicon nitride ceramic product revenue over the prior-year period due to increased market adoption of the Valeo spinal interbody devices and the company’s focus on its core silicon nitride technology.
Gross profit for 2014 totaled $14.9 million, compared with $15.3 million in 2013. Gross margin percentage for 2014 was 65 percent, compared with 68 percent in 2013. Excluding the impact of excess or obsolete inventory for both years, 2014 gross margins improved 3 percentage points to 77 percent, compared with the previous year, due to production efficiencies and quality improvements.
Net loss for 2014 was $32.6 million, compared with $8.3 million the previous year, primarily as a result of a non-cash stock compensation expense of approximately $10.2 million, higher operating expenses, increased interest expense, a loss on the extinguishment of debt and offering costs incurred during the year.
Sonny Bal, M.D., chairman and CEO of Amedica, called the year “remarkable,” adding that he is “proud of the significant achievements our dedicated team has accomplished to-date, as we seek to leverage the opportunities these achievements provide throughout the balance of this year.”
Cash and cash equivalents totaled $18.2 million, while total principal debt obligations were $24.5 million as of Dec. 31, 2014.
Amedica maintained its previous estimates of increasing 2015 silicon nitride sales this year by 30 to 40 percent, thus equating to a total annual revenue range of $23 million to $24 million. Additionally, the company expects the impact from previously announced financial and operational alignment actions to deliver $6 million to $8 million of annualized operating profit benefit beginning in Q1 2015.