Total product revenue decreased by 18% during the first quarter of 2015 to $4.7 million, as compared to $5.8 million in the prior year period. This was primarily attributable to a 37% decrease, or $1.2 million, in the Company's non-silicon nitride business due to lower metals sales. This decrease was partially offset by a 7% increase in silicon nitride ceramic product revenue over the prior-year period.
Gross profit for the quarter totaled $3.2 million, compared to $4.1 million in the same period last year. Gross margin percentage for the first quarter 2015 was 68%, compared to 72% for the first quarter of 2014. Excluding the impact of excess or obsolete inventory for both years, first quarter 2015 gross margins ended at 75% of total sales, as compared to 79% during the prior year period. This decline in gross margins was due to private label sales during the first quarter of 2015, which have lower gross margins due to lower selling prices, but higher operating contribution margins since no commissions are paid and require less operating expenses to support these sales.
Operating expenses for the first quarter of 2015 declined by 12%, or $1.0 million, from the prior year period, to $7.2 million. This year-over-year decline in operating expenses is primarily due to the actions taken by the Company to simplify the organization and align financial objectives earlier in the year, as well as lower commission costs and stock-based compensation expense during the first quarter of 2015.
Net loss for the first quarter was $5.4 million, compared to $4.7 million in the prior-year period, primarily as a result of lower year-over-year revenue and increased interest expense incurred during the quarter.
Adjusted EBITDA, which is defined as earnings before deductions for interest, taxes, depreciation, amortization, non-cash stock compensation expense, change in fair value of our derivative liabilities, offering costs, and loss on extinguishment of debt for the first quarter 2015 was ($2.9) million, compared to ($2.1) million for the prior year period. This decline in adjusted EBITDA was primarily attributable to severance-related expenses of $0.7 million during the first quarter of 2015 and decreased sales during the first quarter of 2015.
Cash and cash equivalents totaled $14.9 million, while total principal debt obligations were $24.3 million as of March 31, 2015.
News 
Market Data 
Discover 
AI
