Abiomed, Inc. (ABMD) has reported a 46.21 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $15.43 million, or $0.34 a share in the quarter, compared with $10.56 million, or $0.23 a share for the same period last year.
Revenue during the quarter surged 33.66 percent to $114.67 million from $85.80 million in the previous year period. Gross margin for the quarter contracted 170 basis points over the previous year period to 83.44 percent. Total expenses were 77.85 percent of quarterly revenues, down from 79.67 percent for the same period last year. This has led to an improvement of 182 basis points in operating margin to 22.15 percent.
Operating income for the quarter was $25.40 million, compared with $17.44 million in the previous year period.
"These are the best of times for Abiomed, because the high risk patient population has been validated and only now with our regulatory approvals can we educate and train our customers to improve the standard of care through hemodynamic support. We began building this field of heart recovery less than one year ago and in the medical technology industry history demonstrates the impact of FDA approvals on adoption", said Michael R. Minogue, chairman, president and chief executive officer, Abiomed. "What makes Abiomed unique is Impella's ability to be used effectively in a Hub and Spoke model to achieve Protected PCI and heart muscle recovery in your community."
For the fourth-quarter 2017, Abiomed, Inc. expects revenue to be $122 million.
For fiscal year 2017, Abiomed, Inc. projects revenue to be in the range of $440 million to $445 million. The company projects operating income to grow in the range of 18 percent to 20 percent.
Working capital increases
Abiomed, Inc. has recorded an increase in the working capital over the last year. It stood at $274.55 million as at Dec. 31, 2016, up 12.49 percent or $30.47 million from $244.08 million on Dec. 31, 2015. Current ratio was at 5.66 as on Dec. 31, 2016, down from 7.48 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 151 days for the last year period. Days sales outstanding went down to 35 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 78 days for the quarter compared with 175 days for the previous year period. At the same time, days payable outstanding went down to 57 days for the quarter from 64 for the same period last year.
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