Enzymotec Ltd. (ENZY) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $4.21 million, or $ 0.18 a share in the quarter, against a net profit of $1.14 million, or $0.05 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $2.39 million, or $0.10 a share compared with a net profit of $1.55 million, or $0.07 a share in the last year period.
Revenue during the quarter dropped 20.24 percent to $10.58 million from $13.27 million in the previous year period. Gross margin for the quarter contracted 1506 basis points over the previous year period to 46.38 percent. Operating margin for the quarter stood at negative 38.55 percent as compared to a positive 8.55 percent for the previous year period.
Operating loss for the quarter was $4.08 million, compared with an operating income of $1.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.39 million compared with $2.42 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 13.17 percent for the quarter compared to 18.21 percent in the last year period.
"While 2016 proved to be a challenging year for the company, we believe that our strategic initiatives in our core businesses remain on track to drive growth in 2017 and beyond. The infant nutrition business reported solid revenue growth of 8% year-over-year; and while there may be fluctuations from quarter to quarter, the underlying demand for INFAT continues to grow through the expansion of our customer base. We also continue to strive for long-term growth in VAYA Pharma through higher efficiency of our existing sales force and further education of medical practitioners on the benefits of our product offering. With that said, the Company's financial results were impacted in the fourth quarter by an inventory write-off of $2.0 million, or $0.09 per share, a provision for a doubtful account of $0.9 million, or $0.04 per share, and to a lesser extent, $0.35 million, or $0.02 per share, due to the depreciation of the euro relative to the U.S. dollar," commented Dr. Ariel Katz, Enzymotec's president and chief executive officer.
Operating cash flow drops significantly
Enzymotec Ltd. has generated cash of $1.38 million from operating activities during the year, down 87.63 percent or $9.81 million, when compared with the last year.
The company has spent $15.98 million cash to meet investing activities during the year as against cash outgo of $0.06 million in the last year.
Cash flow from financing activities was $0.19 million for the year, down 64.37 percent or $0.35 million, when compared with the last year.
Cash and cash equivalents stood at $7.58 million as on Dec. 31, 2016, down 65.52 percent or $14.41 million from $21.99 million on Dec. 31, 2015.
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
