CryoLife, Inc (CRY) has reported 39.53 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $2.99 million, or $0.09 a share in the quarter, compared with $2.14 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.37 million, or $0.13 a share compared with $3.25 million or $0.11 a share, a year ago. Revenue during the quarter grew 23.29 percent to $45.25 million from $36.70 million in the previous year period. Gross margin for the quarter expanded 320 basis points over the previous year period to 65.81 percent. Total expenses were 87.90 percent of quarterly revenues, down from 93.11 percent for the same period last year. This has led to an improvement of 521 basis points in operating margin to 12.10 percent.
Operating income for the quarter was $5.48 million, compared with $2.53 million in the previous year period.
Pat Mackin, Chairman, President and Chief Executive Officer, said, “We posted strong financial and operating results in the third quarter by executing on our core goals and objectives. These results demonstrate that our decision to expand the sales team through the acquisition of On-X and focus on the cardiac surgery market is facilitating cross-selling opportunities and broadening awareness of our On-X valves, as anticipated. Our results were strengthened by our initiative to transition to a direct sales model in several key markets in Europe. We also made solid progress advancing our other 2016 key initiatives. The enhancements to our tissue processing operations are improving our ability to meet the strong demand for our tissue products, particularly for vascular tissue, which represents a near-term growth opportunity. In addition, we expect to resume enrollment in the PerClot IDE trial during the fourth quarter of 2016, keeping us on track for potential FDA approval for this product in the first half of 2019. Looking forward, we expect to finish the year with a solid fourth quarter and deliver meaningful revenue growth and additional margin expansion in 2017.”
CryoLife, Inc forecasts revenue to be in the range of $181 million to $182.50 million for fiscal year 2016. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $0.43 to $0.45 on adjusted basis.
Working capital increases sharply
CryoLife, Inc has recorded an increase in the working capital over the last year. It stood at $117.34 million as at Sep. 30, 2016, up 29.51 percent or $26.74 million from $90.60 million on Sep. 30, 2015. Current ratio was at 5.74 as on Sep. 30, 2016, up from 5.08 on Sep. 30, 2015. Days sales outstanding went down to 24 days for the quarter compared with 60 days for the same period last year.
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