Abaxis (ABAX) has reported 14 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $6.84 million, or $0.30 a share in the quarter, compared with $7.96 million, or $0.35 a share for the same period last year.
Revenue during the quarter went down marginally by 0.20 percent to $52.77 million from $52.88 million in the previous year period. Gross margin for the quarter contracted 26 basis points over the previous year period to 55.72 percent. Total expenses were 79.46 percent of quarterly revenues, up from 78.71 percent for the same period last year. That has resulted in a contraction of 74 basis points in operating margin to 20.54 percent.
Operating income for the quarter was $10.84 million, compared with $11.26 million in the previous year period.
Clint Severson, chairman and chief executive officer of Abaxis, said, "As previously announced, revenues for the quarter were essentially flat at $52.8 million compared to last year’s third quarter, and increased 4% for the nine-month period ended December 31, 2016 as compared to last year’s comparable period. Results for the quarter were negatively impacted by many factors, including foreign currency exchange rates, which reduced revenues by approximately $0.7 million and the reduction of medical and veterinary orders from distributors including Abbott Point of Care, Inc. and a difficult comparison for the medical business due to a large sale of Piccolo Xpress instruments in the People’s Republic of China in the prior year quarter. On the positive side, we are pleased our consumable revenues increased by 5% and accounted for 76% of total revenues in the third quarter as compared to last year’s comparable quarter. As a result, veterinary sales increased 6% and medical sales were down 21% for the third quarter of fiscal 2017 compared to last year’s comparable quarter."
Working capital increases marginallyAbaxis has recorded an increase in the working capital over the last year. It stood at $194.66 million as at Dec. 31, 2016, up 3.30 percent or $6.22 million from $188.43 million on Dec. 31, 2015. Current ratio was at 7.74 as on Dec. 31, 2016, down from 7.89 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 102 days for the quarter from 162 days for the last year period. Days sales outstanding went up to 57 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 77 days for the quarter compared with 138 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 31 for the same period last year.
Debt comes down significantlyAbaxis has recorded a decline in total debt over the last one year. It stood at $0.30 million as on Dec. 31, 2016, down 25 percent or $0.10 million from $0.40 million on Dec. 31, 2015. Total debt was 0.10 percent of total assets as on Dec. 31, 2016, compared with 0.15 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
