Amedica recently released their first quarter 2014 financial report, with revenue increasing 10 percent over the same period last year.
This is the first financial report since the company made its initial public offering earlier this year. Amedica, which focuses on products using the silicon nitride technology, reported a positive outlook going forward from the first quarter. Here are five findings from the report:
1. Product revenue from the company's proprietary silicon nitride ceramic products increased 41 percent over the same period last year. Silicon nitride product revenue reached $2.5 million during the first quarter. The silicon nitride ceramic revenue increased 7 percent sequentially over the fourth quarter of 2013. The success was primarily due to second generation Valeo spinal interbody device market adoption. The company also increased corporate focus on its core nitride technology.
2. Total product revenue reached $5.8 million for the first period. The adjusted EBITDA for the first quarter was $2.2 million, a $0.2 million difference from the same period last year when the company reported $2.4 million. Amedica President and CEO Eric Olson said, "The company is focused on driving the technology forward for rapid adoption, to the ultimate benefit of patients worldwide. We have made significant progress on this front over the past year, which is reflected in the 41 percent increase in silicon nitride product revenue."
3. Amedica reported overall net loss of $4.7 million for the first quarter, a $1.2 million increase over the same period last year. The increased net loss was primarily due to stock compensation expense of approximately $1.4 million recorded in the first quarter of 2014.
"Operations continue to benefit from real improvements in cost and enhancements in sales and marketing programs. Initiatives that focus our revenues to increase efficiency have also resulted in a reduction in net loss, excluding stock compensation expenses, and a substantial increase in gross margin compared with the first quarter of 2013," said Amedica CFO Jay Moyes in the news release.
4. In March, the company announced it would offer 3.5 million shares at $5.75 per share for its initial public offering on the NASDAQ Capital Market. The company began trading publicly in February under the ticker symbol "AMDA." JMP Securities was acting as the sole book-running manager for the offering and Needham & Company acted as co-manager for the offering.
Prior to the IPO, Amedica announced it would collaborate with Kyocera Industrial Ceramics Corporation to manufacture devices from Amedica's silicon nitride biomaterial and at Kyocera's Vancouver, Wash.-based facility. "There is an unmet need for advanced biomaterials in orthopedics and spine," said Mr. Olson in the news release last November. "We are seeing an increasing interest for our silicon nitride interbody devices and increased interest in this material for use in other applications and want to ensure a consistent supply for surgeons and more importantly patients."
5. The company is also preparing for the future by seeking out additional expertise. Amedica welcomed industry veteran Jeff White to its board of directors in January. Mr. White has more than 35 years of experience and was instrumental in developing various companies in the surgical device and biomaterials industries. He currently serves as principle at Medtech Advisory Group and previously was global director of business development for Synthes.
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