Amedica Corporation (AMDA) saw its loss narrow to $4.34 million, or $0.30 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $10.13 million, or $2.21 a share.
Revenue during the quarter plunged 30.13 percent to $3.38 million from $4.84 million in the previous year period. Gross margin for the quarter expanded 1127 basis points over the previous year period to 77.35 percent. Operating margin for the quarter stood at negative 94.94 percent as compared to a negative 58.04 percent for the previous year period.
Operating loss for the quarter was $3.21 million, compared with an operating loss of $2.81 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $2.67 million compared to negative $2.16 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 79.16 percent for the quarter compared to negative 44.69 percent in the last year period.
“Despite the decrease in commercial sales this quarter, we are confident with our commercial sales strategy targeted at adding new surgeons and distributors and expanding our sales into new territories,” said Dr. Sonny Bal, chairman and chief executive officer. “Later this month, we will announce a new sales leader; a seasoned, proven individual with credibility in the spine field.”
Operating cash flow remains negative
Amedica Corporation has spent $5.26 million cash to meet operating activities during the nine month period as against cash outgo of $7.06 million in the last year period.
The company has spent $0.40 million cash to meet investing activities during the nine month period as against cash outgo of $0.47 million in the last year period. It has incurred net capital expenditure of $0.40 million on net basis during the nine month period, down 16.07 percent or $0.08 million from year ago period.
Cash flow from financing activities was $4.78 million for the nine month period, up 755.46 percent or $4.22 million, when compared with the last year period.
Cash and cash equivalents stood at $10.61 million as on Sep. 30, 2016, down 5.81 percent or $0.66 million from $11.27 million on Sep. 30, 2015.
Working capital increases sharply
Amedica Corporation has recorded an increase in the working capital over the last year. It stood at $7.09 million as at Sep. 30, 2016, up 1,274.22 percent or $6.57 million from $0.52 million on Sep. 30, 2015. Current ratio was at 1.54 as on Sep. 30, 2016, up from 1.02 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 448 days for the quarter from 269 days for the last year period. Days sales outstanding went down to 17 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has increased to 472 days for the quarter compared with 272 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 26 for the same period last year.
Debt comes down significantly
Amedica Corporation has recorded a decline in total debt over the last one year. It stood at $8.43 million as on Sep. 30, 2016, down 57.78 percent or $11.54 million from $19.97 million on Sep. 30, 2015. AMEDICA has recorded a decline in short-term debt over the last one year. It stood at $8.43 million as on Sep. 30, 2016, down 57.78 percent or $11.54 million from $19.97 million on Sep. 30, 2015. Total debt was 26.82 percent of total assets as on Sep. 30, 2016, compared with 53.70 percent on Sep. 30, 2015.
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