Amedica Corporation (NASDAQ:AMDA) cracked 10.38% to $0.82 yesterday, after it announced a reduction of 38% in its workforce.
Over 2 million shares were traded during the session.
The company resorted to the job cuts to conserve cash by reducing its operating expenses by approximately $2 million annually.
“The company will continue to focus its efforts on its commercial sales strategy targeted at adding new surgeons and distributors and expanding sales into new territories,” said the company in a statement.
Amedica markets spinal fusion products and is developing a new generation of wear- and corrosion-resistant implant components for hip and knee arthroplasty as well as dental applications, manufactured with medical-grade silicon nitride ceramic.
Dr. Sonny Bal, chairman and Chief Executive Officer of Amedica, said: “Consistent with our earnings call remarks, this difficult decision is the prudent way forward, as we seek to conserve cash and pursue our business objectives.”
Amedica Corporation (NASDAQ:AMDA): Indifferent Q2 results
In August the company reported Q2 EPS of $-0.40, which missed estimates by $0.09, and revenue of $4 million, which missed by $0.2 million. Revenue fell 16.3% year-on-year.
The company confirmed that as of July 2016 it had enough cash, and that it had reduced its debt obligations by $14.3 million over the last 12 months; moreover, its term debt was now less than $10 million.
“The Company needs to be prudent in its uses of cash, focusing on opportunities that drive near-term sales,” Dr Bal had warned on the earnings call. “With 30,000 implants sold and eight-year solid track history and a solid portfolio of clinical data and science data, we can now focus on growing our retail sales.”
The stock touched a 52-week low of $0.60 on August 15, but rebounded sharply a week later after the company announced that the FDA had approved expanded sizes of its Valeo II Lateral Lumbar interbody fusion device.
However, shares are currently trending lower and may again test the August low.