Foundation Medicine, Inc. (FMI) saw its loss widen to $35.61 million, or $1.02 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $19.02 million, or $0.55 a share.
Revenue during the quarter grew 10.64 percent to $28.82 million from $26.05 million in the previous year period. Gross margin for the quarter contracted 1759 basis points over the previous year period to 39.44 percent.
Operating loss for the quarter was $35.70 million, compared with an operating loss of $19.11 million in the previous year period.
"Since its inception just six years ago, Foundation Medicine has established itself as the clear leader in molecular information and precision medicine in oncology," stated Troy Cox, chief executive officer of Foundation Medicine. "We believe 2017 will be a year of continued growth and value creation particularly as we progress through Parallel Review of FoundationOne with FDA and CMS and simultaneously collaborate with healthcare providers, payers and biopharma partners to apply our molecular information to accelerate personalized cancer care."
Foundation Medicine projects revenue to be in the range of $135 million to $145 million for financial year 2017.
Working capital drops significantlyFoundation Medicine has witnessed a decline in the working capital over the last year. It stood at $128.27 million as at Dec. 31, 2016, down 35.78 percent or $71.48 million from $199.75 million on Dec. 31, 2015. Current ratio was at 4.16 as on Dec. 31, 2016, down from 7.68 on Dec. 31, 2015. Cash conversion cycle (CCC) has increased to 12 days for the quarter from 4 days for the last year period. Days sales outstanding went up to 16 days for the quarter compared with 14 days for the same period last year.
Days inventory outstanding has decreased to 28 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 43 for the same period last year.
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