SYLMAR, Calif.—Second Sight Medical Products (NASDAQ:EYES), maker of the Argus II retinal prosthesis, posted losses for the three months ended March 31, 2017, despite an increase in implant volume of the device.

Second Sight reported that 14 Argus II Retinal Prosthesis Systems were implanted worldwide during the first quarter of 2017 compared to seven in the fourth quarter of 2016 and 10 in the first quarter of 2016. However, the company’s net sales in the first quarter of 2017 were $1.0 million compared to $1.1 million in the first quarter of 2016, which represents revenue per implant of $72,000 in the first quarter of 2017 compared to $105,000 in the first quarter of 2016.

Revenue was mainly impacted by the deferral of revenue recognition of two implants, and no-charge units that are sometimes given to centers as part of a sales arrangement, or in markets where centers are seeking to gain patient experience while establishing reimbursement coverage, the company said.

Will McGuire, Second Sight’s CEO said, “With a focus on execution and our Centers of Excellence (“COE”) strategy, we had strong implant volume during the first quarter of 2017, including eight implants in North America and are seeing the momentum continue into the second quarter. We are pleased to have performed our first implants in three new centers and look forward to adding more COEs throughout the year.”

Second Sight’s gross loss was $118,000 in the first quarter of 2017, compared to a gross profit of $141,000 in the first quarter of 2016. The gross loss is due to lower revenue and higher cost of sales in the first quarter of 2017 compared to the prior year, the company said. Cost of sales in the first quarter of 2017 included higher charges for unabsorbed manufacturing costs due to the reduction of production activity compared to the prior year.

Total operating expenses in the first quarter of 2017 were $7.4 million, compared to $6.0 million in the first quarter of 2016, reflecting higher research and development costs and personnel-related costs.

Net loss for the first quarter of 2017 was $7.5 million, compared to a net loss of $5.8 million in the prior year’s quarter. The company recorded non-cash charges of $268,000 and $946,000 during the first quarters of 2017 and 2016, respectively.

As of March 31, 2017, Second Sight had $23.9 million in cash, cash equivalents and investments. On March 6, 2017, the company raised $19.7 million in net proceeds through the issuance of Second Sight stock and warrants in a rights offering to existing shareholders as of Feb. 10, 2017.