Digirad Corporation (DRAD) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $2.08 million, or $ 0.10 a share in the quarter, against a net profit of $11.61 million, or $0.58 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $0.21 million, or $0.01 a share compared with a net profit of $1.30 million, or $0.07 a share in the last year period.
Revenue during the quarter dropped 6.67 percent to $29.08 million from $31.16 million in the previous year period. Gross margin for the quarter contracted 466 basis points over the previous year period to 24.44 percent. Operating margin for the quarter stood at negative 3.35 percent as compared to a negative 1.77 percent for the previous year period.
Operating loss for the quarter was $0.98 million, compared with an operating loss of $0.55 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.81 million compared with $3.66 million in the prior year period. At the same time, adjusted EBITDA margin contracted 551 basis points in the quarter to 6.22 percent from 11.73 percent in the last year period.
Digirad president and chief executive officer Matt Molchan said, "Overall, our core businesses are performing well and within our expectations. Seasonality impacts us each year in the first quarter, with a little more impact this year than in the prior year."
For financial year 2017, Digirad Corp expects revenue to be $125 million. The company forecasts diluted earnings per share to be in the range of $0.10 to $0.15 on adjusted basis.
Working capital drops significantlyDigirad Corporation has witnessed a decline in the working capital over the last year. It stood at $4.62 million as at Mar. 31, 2017, down 49.11 percent or $4.46 million from $9.07 million on Mar. 31, 2016. Current ratio was at 1.21 as on Mar. 31, 2017, down from 1.39 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 36 days for the last year period. Days sales outstanding went up to 32 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has decreased to 12 days for the quarter compared with 19 days for the previous year period. At the same time, days payable outstanding went up to 15 days for the quarter from 13 for the same period last year.
Debt comes down significantly Digirad Corporation has recorded a decline in total debt over the last one year. It stood at $20.15 million as on Mar. 31, 2017, down 35.44 percent or $11.06 million from $31.21 million on Mar. 31, 2016. Total debt was 19.60 percent of total assets as on Mar. 31, 2017, compared with 26.81 percent on Mar. 31, 2016. Debt to equity ratio was at 0.31 as on Mar. 31, 2017, down from 0.48 as on Mar. 31, 2016. 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
