ACETO Corporation (ACET) has reported a 52.84 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $4.38 million, or $0.15 a share in the quarter, compared with $9.30 million, or $0.32 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $8.28 million, or $0.28 a share compared with $11 million or $0.37 a share, a year ago.
Revenue during the quarter dropped 4.11 percent to $128.02 million from $133.50 million in the previous year period. Gross margin for the quarter contracted 181 basis points over the previous year period to 24.09 percent. Total expenses were 93.15 percent of quarterly revenues, up from 88.38 percent for the same period last year. That has resulted in a contraction of 478 basis points in operating margin to 6.85 percent.
Operating income for the quarter was $8.76 million, compared with $15.52 million in the previous year period.
"Our first quarter results fell below last year due to lower revenue and gross profit in our Human Health segment partially offset by gains in Pharmaceutical Ingredients and Performance Chemicals," said Sal Guccione, chief executive officer of ACETO. "In our Human Health segment, Rising Pharmaceuticals experienced increased competition for certain products which began in the fourth quarter of fiscal 2016, while Pharmaceutical Ingredients benefited from favorable mix and Performance Chemicals saw a boost from increased agricultural protection product sales."
Working capital increases sharply
ACETO Corporation has recorded an increase in the working capital over the last year. It stood at $262.86 million as at Sep. 30, 2016, up 29.97 percent or $60.62 million from $202.24 million on Sep. 30, 2015. Current ratio was at 3.82 as on Sep. 30, 2016, up from 2.92 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 123 days for the quarter from 159 days for the last year period. Days sales outstanding went up to 123 days for the quarter compared with 121 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 86 days for the previous year period. At the same time, days payable outstanding was almost stable at 49 days for the quarter, when compared with the previous year period.
Debt moves up
ACETO Corporation has witnessed an increase in total debt over the last one year. It stood at $120.17 million as on Sep. 30, 2016, up 9.14 percent or $10.06 million from $110.11 million on Sep. 30, 2015. Total debt was 22.06 percent of total assets as on Sep. 30, 2016, compared with 22.44 percent on Sep. 30, 2015. Debt to equity ratio was at 0.39 as on Sep. 30, 2016, down from 0.42 as on Sep. 30, 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
