Kips Bay Medical, Inc. (OTCMKTS:KIPS) net sales in 1Q2015 came at $8000 compared to $26,000 in 1Q2014. The decline indicates the effects of reorganization plans implemented in January 2015 as it reduced its two sales directors and shifted focus on concluding the eMESH I clinical feasibility study. The gross profit came at $4,000 in 1Q2015 compared to $14,000 in the first quarters of 2014. Net loss in 1Q2015 was $844,000 against a net loss of $1.4 million in the first quarter of 2014.
The R&D expenses declined 39.6% to $386,000 in 1Q2015 compared to $639,000 in 1Q2014. The decline was due to cost reductions achieved from Kips January 2015 reorganization in which it reduced staffs, executed salary reductions and eliminated non-clinical associated operating expenses. Moreover, costs related with the eMESH I clinical feasibility study decreased during 1Q2015 as enrollment was almost completed as of December 31, 2014.
The SG&A expenses declined 43.1% to $463,000 in 1Q2015 down from $814,000 in 1Q2014. This decline was due to cost reductions measures implemented as part of the Kips January 2015 reorganization. The total cash/cash equivalents and short-term investments came at $2.6 million against $3.6 million at December 31, 2014. The total current assets declined to $3.6 million from $4.4 million at December 31, 2014. The drop was due to the Kips use of cash to support its clinical trials and operations in 1Q2015.
The other highlights
The current liabilities declined to $416,000 from $433,000 as of December 31, 2014. The drop was due to the payments timing at the end of the quarter. The cash utilized in operations declined to $1.0 million for 1Q2015 from $1.4 million in 1Q2014. This decrease can be attributed to the decline in net loss for 1Q2015 as compared with 1Q2014.
In last trading session, the stock price of Kips declined more than 79% to close the trading session at $0.0412.