Enzymotec (ENZY) has reported 98.27 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.02 million in the quarter, compared with $1.45 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.77 million, or $0.03 a share compared with $2.10 million or $0.09 a share, a year ago. 

Revenue during the quarter dropped 14.09 percent to $12 million from $13.97 million in the previous year period. Gross margin for the quarter expanded 340 basis points over the previous year period to 70.20 percent. Operating margin for the quarter stood at negative 1.56 percent as compared to a positive 9.66 percent for the previous year period.

Operating loss for the quarter was $0.19 million, compared with an operating income of $1.35 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $1.48 million compared with $2.74 million in the prior year period. At the same time, adjusted EBITDA margin contracted 725 basis points in the quarter to 12.38 percent from 19.63 percent in the last year period.  

"Enzymotec started the year on solid footing and with renewed confidence as the Company returned to profitability. Infant nutrition saw revenues jump to $10.1 million using the proportionate consolidation method and VAYA Pharma continues to show promise with 31% year-over-year "sales-out" growth," commented Erez Israeli, Enzymotec’s president and chief executive officer. "We are firmly committed to infant nutrition as we continue to experience positive growth, which further demonstrates the value proposition we offer the brands and OEMs. A portion of this growth may be influenced by customer inventory increases, related to the regulatory climate in China. Demand for our prescription VAYA Pharma products continues to grow and we look forward to having the opportunity to directly engage with the FDA to address its concerns regarding the labelling and classification of medical foods. Although we had a continuation of wholesaler destocking by another $1.0 million this quarter, we believe that their inventories are now at levels that will significantly reduce the risk of further negative impact on our revenue growth. As we look at the krill business, which remains viable in a competitive market, we believe that the product has opportunities that we will explore throughout the remainder of the year, particularly now that the patent dispute with Neptune has been amicably resolved."

Cash flow from investing activities was $0.26 million for the quarter as against cash outgo of $13.32 million in the last year period.

Cash flow from financing activities was $0.05 million for the quarter, up 119.05 percent or $0.02 million, when compared with the last year period.

Cash and cash equivalents stood at stood at $8.16 million as at Mar. 31, 2017.