Amedica Corporation recently announced its financial results for the fourth quarter and full year, which ended Dec. 31, 2015. Total product revenue, cost of revenue and operating expenses all decreased in 2015 compared with figures from 2014.
According to a company press release, total product revenue decreased by $3.3 million (15%) in 2015, down to $19.5 million for the year. Representatives noted the decline was primarily due to lower metal sales as a result of a decline in the level of activity for a few key surgeons and the consequences of restructuring efforts that took place in early 2015. Cost of revenue also decreased $1.7 million (21%) in 2015 compared with 2014, primarily as a result of reduced sales and a decrease in excess and obsolete inventory.
“During the last half of this year, and especially the fourth quarter, we were active in the scientific development of silicon nitride and solidifying our foundation to support sustainable growth,” B. Sonny Bal, MD, MBA, chairman and chief executive officer of Amedica Corporation, said in the release. “In addition to strengthening our balance sheet and reducing cash burn, we have also placed a strong emphasis on increasing sales of our core product through a growing base of independent distributors, as well as the variety of discussions and transactions we have achieved in our business development efforts to date. The increased interest and adoption of silicon nitride, coupled with our improved financial position, provide us with the competitive advantage necessary to build awareness and drive excitement for our unique biomaterial.”
Operating expenses also decreased by $13.8 million (35%) in 2015 compared with 2014. The decline was attributed to the company’s actions to simplify the organization and align financial objectives earlier in the year, as well as lowering the commission costs. In addition, a $9 million reduction in stock-based compensation expense added to the decrease in operating expenses.