Avinger, Inc. (AVGR) saw its loss narrow to $12.97 million, or $0.73 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $13.25 million, or $1.08 a share.
Revenue during the quarter surged 95.37 percent to $5.32 million from $2.72 million in the previous year period. Gross margin for the quarter contracted 608 basis points over the previous year period to 29.61 percent.
Operating loss for the quarter was $11.43 million, compared with an operating loss of $9.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $9.32 million compared to negative $8.34 million in the prior year second quarter.
"We are very pleased with our sales execution this quarter, which reflects the proactive changes made to the sales organization, as well as our recent success in signing contracts with large healthcare providers," said Jeff Soinski, Avinger's president and chief executive officer. "Additionally, we closed a significant financing this quarter which allows us to continue to focus on driving adoption of our Lumivascular technology."
For financial year 2016, Avinger, Inc. projects revenue to be in the range of $20 million to $21 million. It forecasts diluted loss per share to be in the range of $3.28 to $3.46 for the same period.
Working capital declines
Avinger, Inc. has witnessed a decline in the working capital over the last year. It stood at $48.86 million as at Sep. 30, 2016, down 11.05 percent or $6.07 million from $54.93 million on Sep. 30, 2015. Current ratio was at 8.01 as on Sep. 30, 2016, down from 10.31 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 113 days for the quarter from 209 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 87 days for the quarter compared with 183 days for the previous year period. At the same time, days payable outstanding went down to 29 days for the quarter from 38 for the same period last year.
Debt increases substantially
Avinger, Inc. has witnessed an increase in total debt over the last one year. It stood at $40.71 million as on Sep. 30, 2016, up 39.65 percent or $11.56 million from $29.15 million on Sep. 30, 2015. Total debt was 67.36 percent of total assets as on Sep. 30, 2016, compared with 45.93 percent on Sep. 30, 2015. Debt to equity ratio was at 3.42 as on Sep. 30, 2016, up from 1.09 as on Sep. 30, 2015.
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