DENTSPLY SIRONA Inc. (XRAY) has reported a 52.16 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $59.80 million, or $0.26 a share in the quarter, compared with $125 million, or $0.70 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $113.70 million, or $0.49 a share compared with $122.40 million or $0.69 a share, a year ago. Revenue during the quarter grew 16.55 percent to $900.50 million from $772.60 million in the previous year period. Gross margin for the quarter expanded 42 basis points over the previous year period to 54.64 percent. Total expenses were 90.65 percent of quarterly revenues, up from 90.59 percent for the same period last year. That has resulted in a contraction of 6 basis points in operating margin to 9.35 percent.
Operating income for the quarter was $84.20 million, compared with $72.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $147.90 million compared to $169.50 million in the prior year period. At the same time, adjusted operating margin contracted 551 basis points in the quarter to 16.42 percent from 21.94 percent in the last year period.
Jeffrey T. Slovin, Dentsply Sirona’s chief executive officer commented: "As expected, our first quarter results were impacted by the transition of our North American distribution strategy and a seasonal slowdown ahead of the International Dental Show in March. I am pleased to announce the expansion of our U.S. distribution with Henry Schein and a new agreement with Patterson Companies. By leveraging the strength of both these partners, we expect to increase adoption of our products and facilitate more revenue synergy activities."
For financial year 2017, DENTSPLY SIRONA Inc. forecasts diluted earnings per share to be in the range of $2.80 to $2.90 on adjusted basis.
Operating cash flow improves significantly
DENTSPLY SIRONA Inc. has generated cash of $82.50 million from operating activities during the quarter, up 11,685.71 percent or $81.80 million, when compared with the last year period. The company has spent $41.10 million cash to meet investing activities during the quarter as against cash inflow of $504.40 million in the last year period. It has incurred capital expenditure of $34.30 million on net basis during the quarter, up 68.14 percent or $13.90 million from year ago period.
The company has spent $67.60 million cash to carry out financing activities during the quarter as against cash outgo of $472.80 million in the last year period.
Cash and cash equivalents stood at $363.30 million as on Mar. 31, 2017, up 12.44 percent or $40.20 million from $323.10 million on Mar. 31, 2016.
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