Sientra, a leading Irvine-based manufacturer specializing in implants and related products for breast augmentation and reconstruction surgery, witnessed a decline in its stock value following the announcement of preliminary third-quarter (Q3) revenue figures that fell short of analysts’ expectations.
At the time of this publication, Sientra Inc stock (SIEN) has witnessed a decline.
Sientra Inc
Current Price: $0.63
Change : -0.83
Change (%): (-56.85%)
Volume: 899.9K
Source: Tomorrow Events Market Data
The unaudited figures indicate that the total Q3 revenue of Sientra of 2023 is projected to range between $19.2 million to $19.7 million. This marks a notable decrease from the $22.6 million recorded in the same period the previous year. The third-quarter performance was adversely impacted by an overall market softness, coupled with more pronounced seasonal challenges, which resulted in a reduced number of augmentation and reconstruction procedures, particularly in the months of July and August.
Given the preliminary third-quarter financial results and the anticipation of a persistently volatile operating landscape due to macroeconomic and geopolitical factors, the company has opted to withdraw its fiscal year 2023 guidance.
As of September 30, 2023, the unaudited net cash and cash equivalents are projected to range between $14.7 million to $15.2 million, in contrast to $26.1 million on December 31, 2022, and $18.6 million on June 30, 2023.
Sientra, in collaboration with its advisors and financial partners, remains dedicated to exploring strategic alternatives and improving the company’s balance sheet to chart a robust course for future success. Throughout this process, operations will continue seamlessly to ensure delivery to customers, patients, employees, and partners.
Ron Menezes, the President and CEO of Sientra, expressed optimism despite the challenges, stating, “While we continue to observe softness in the augmentation market, we are buoyed by the growth in breast reconstruction, driven by the success of new products such as Viality and SimpliDerm. We are equally committed to fortifying our financial position, positioning Sientra as the preferred partner for plastic surgeons.”
Sientra’s stock experienced a dip in response to the news, reflecting investor concerns about the company’s financial performance in the wake of market challenges.
