CryoLife, Inc. (CRY) has reported a 9.90 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $2.90 million, or $0.09 a share in the quarter, compared with $2.64 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.07 million, or $0.12 a share compared with $3.94 million or $0.13 a share, a year ago.
Revenue during the quarter grew 13.03 percent to $45.03 million from $39.84 million in the previous year period. Gross margin for the quarter expanded 272 basis points over the previous year period to 69.28 percent. Total expenses were 88.66 percent of quarterly revenues, up from 87.86 percent for the same period last year. That has resulted in a contraction of 80 basis points in operating margin to 11.34 percent.
Operating income for the quarter was $5.10 million, compared with $4.84 million in the previous year period.
Pat Mackin, chairman, president, and chief executive officer, said, "We continued to make meaningful progress on all of our key strategic initiatives in the fourth quarter. Although our top line was slightly below our upwardly revised guidance, we are confident it was not due to competitive pressures or a decline in demand for our products as our business momentum remains strong. Furthermore, we exceeded our net income guidance and posted a 69 percent gross margin in the quarter."
For financial year 2017, CryoLife, Inc. projects revenue to be in the range of $188 million to $192 million. It forecasts diluted earnings per share to be in the range of $0.40 to $0.43 on adjusted basis for the same period.
Working capital increases sharply
CryoLife, Inc. has recorded an increase in the working capital over the last year. It stood at $117.13 million as at Dec. 31, 2016, up 30.06 percent or $27.07 million from $90.06 million on Dec. 31, 2015. Current ratio was at 4.89 as on Dec. 31, 2016, down from 5.59 on Dec. 31, 2015.
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