AtriCure, Inc. (ATRC) saw its loss narrow to $8.62 million, or $0.27 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $10.91 million, or $0.36 a share. On an adjusted basis, net loss for the quarter was $1.38 million, when compared with $6.10 million in the last year period. Revenue during the quarter grew 14.76 percent to $41.16 million from $35.86 million in the previous year period. Gross margin for the quarter contracted 102 basis points over the previous year period to 70.21 percent. Operating margin for the quarter stood at negative 18.70 percent as compared to a negative 29.64 percent for the previous year period.
Operating loss for the quarter was $7.70 million, compared with an operating loss of $10.63 million in the previous year period.
"As we reflect back on 2016, we are pleased to have grown revenue 20% for the year while exceeding our bottom line expectations and making meaningful progress in continuing our transformation into the minimally invasive Afib market, a large underpenetrated and underserved market. Throughout the year, we hit several strategic milestones and begin 2017 poised to broaden our minimally invasive presence through enrollment in the CONVERGE clinical trial and the expansion of our AtriClip franchise," said Mike Carrel, president and chief executive officer of AtriCure. "We are also encouraged by the recently updated STS guidelines which include a Class 1 recommendation for surgical ablation of Afib. We believe the updated guidelines will further support long term adoption of the surgical treatment Afib worldwide. In the year ahead, we plan to drive toward consistent revenue growth while exercising operating expense control to achieve our goal of EBITDA profitability in 2018."
AtriCure, Inc. expects revenue to grow in the range of 13 percent to 15 percent for the financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $0.94 to $1.04.
Operating cash flow remains negative
AtriCure, Inc. has spent $15.12 million cash to meet operating activities during the year as against cash outgo of $7.84 million in the last year. The company has spent $12.08 million cash to meet investing activities during the year as against cash outgo of $10.50 million in the last year.
Cash flow from financing activities was $27.70 million for the year, up 98.37 percent or $13.73 million, when compared with the last year.
Cash and cash equivalents stood at $24.21 million as on Dec. 31, 2016, up 1.87 percent or $0.44 million from $23.76 million on Dec. 31, 2015.
Working capital increases sharply
AtriCure, Inc. has recorded an increase in the working capital over the last year. It stood at $56.89 million as at Dec. 31, 2016, up 31.80 percent or $13.73 million from $43.16 million on Dec. 31, 2015. Current ratio was at 2.97 as on Dec. 31, 2016, up from 2.37 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 35 days for the last year period. Days sales outstanding went down to 24 days for the quarter compared with 25 days for the same period last year.
Days inventory outstanding has decreased to 66 days for the quarter compared with 79 days for the previous year period. At the same time, days payable outstanding went down to 102 days for the quarter from 139 for the same period last year.
Debt increases substantially
AtriCure, Inc. has witnessed an increase in total debt over the last one year. It stood at $37.20 million as on Dec. 31, 2016, up 171.37 percent or $23.49 million from $13.71 million on Dec. 31, 2015. Atricure has witnessed an increase in long-term debt over the last one year. Total debt was 13.46 percent of total assets as on Dec. 31, 2016, compared with 5.02 percent on Dec. 31, 2015. Debt to equity ratio was at 0.22 as on Dec. 31, 2016, up from 0.07 as 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
