Breast implant maker Sientra narrows fourth quarter losses
Goleta-based breast implant manufacturer Sientra reduced its net losses for the fourth quarter of 2016 to $8.1 million, compared to $28.3 million for the same period the year prior.
The company also reported $6.5 million in net sales for the fourth quarter of 2016, compared to $1.5 million for the same period in 2015.
“The company is clearly well-positioned for future growth,” said Patrick Williams, chief financial officer for Sientra. “We see 2017 as another year of transition for the company.”
Its cash and cash equivalents were at $67.2 million for the final quarter of 2016, down from $112.8 million for the same quarter in 2015. Total sales were also down to $20.7 million from $38.1 million the year prior. The company explained the drop in sales due to a voluntary hold on the sale and implanting of products from its previous manufacturing supplier.
Sientra is optimistic about 2017 and 2018 as it looks to re-introduce its breast implant products in Europe, where its former manufacturer had been suspended. European regulators said Silimed’s factory in Rio de Janeiro was contaminated by microscopic particles of silica and cotton.
Sientra has partnered with Wisconsin-based Berkshire Hathaway subsidiary Vesta to begin manufacturing its silicone breast implants in April. The company expects to return to profitability in 2018.
The company had been accused by angry shareholders of knowing about the forthcoming suspension of Silimed products before it held a nearly simultaneous second public offering on Sept. 23, 2015.
Sientra officials say all of that turmoil is behind the company, and it is looking toward a controlled relaunch of its products and expansion to the breast reconstructive market.
“We are delighted with the progress we have made in overcoming the obstacles we have inherited just over a year ago,” said Sientra CEO Jeffrey Nugent in a conference call for investors on Tuesday.
The company also announced that it has added a $15 million secured line of credit and a $5 million available secured credit facility with Silicon Valley Bank. The credit lines will be used for general corporate purposes, working capital needs related to inventory as the Sientra prepares for final manufacturing site approval, as well as strategic initiatives.
Sientra’s stock closed at $9.44 on March 14.
• Contact Joshua Molina at [email protected].
