Foundation Medicine, Inc. (FMI) saw its loss widen to $31.28 million, or $0.90 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $20.60 million, or $0.60 a share.
Revenue during the quarter grew 15.85 percent to $29.43 million from $25.40 million in the previous year period. Gross margin for the quarter contracted 1336 basis points over the previous year period to 45.81 percent.
Operating loss for the quarter was $31.42 million, compared with an operating loss of $20.61 million in the previous year period.
"Foundation Medicine delivered another solid quarter highlighted by strong biopharma revenue and record clinical testing volume," said Michael Pellini, M.D., chief executive officer of Foundation Medicine. "We believe our progress on building distinct, yet synergistic clinical and biopharma businesses, developing applications that enable patient access to therapies and clinical trials, aggressively working towards reimbursement coverage and payment for our comprehensive genomic profiling assays and pursuing parallel review with FDA and CMS for FoundationOne will drive continued growth and value creation."
Foundation Medicine expects revenue to be in the range of $110 million to $120 million for financial year 2016.
Working capital drops significantly
Foundation Medicine, Inc. has witnessed a decline in the working capital over the last year. It stood at $157.57 million as at Sep. 30, 2016, down 35.75 percent or $87.67 million from $245.23 million on Sep. 30, 2015. Current ratio was at 5.04 as on Sep. 30, 2016, down from 9.02 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 16 days for the quarter from 18 days for the last year period. Days sales outstanding were almost stable at 44 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 34 days for the quarter compared with 69 days for the previous year period. At the same time, days payable outstanding went down to 62 days for the quarter from 95 for the same period last year.
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