GenMark Diagnostics, Inc. (GNMK) saw its loss widen to $12.68 million, or $0.27 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $8.78 million, or $0.21 a share.
Revenue during the quarter grew 12.88 percent to $14.88 million from $13.19 million in the previous year period. Gross margin for the quarter contracted 639 basis points over the previous year period to 58.06 percent. Operating margin for the quarter stood at negative 81.01 percent as compared to a negative 64.17 percent for the previous year period.
Operating loss for the quarter was $12.06 million, compared with an operating loss of $8.46 million in the previous year period.
“Last year we delivered strong results including growing our revenues by 25%, as well as successfully launching ePlex in Europe and ending the year with more than 55 customer agreements. We also completed the necessary FDA studies and submissions for the ePlex system and RP panel,” said Hany Massarany, president and chief executive officer of GenMark. “2017 will be a pivotal year for our company, as we successfully launch ePlex in the USA and drive its continued adoption and business success in the European and US markets. Based on multiple internal and external studies with several thousand samples, we are very pleased with the performance of all three ePlex Blood Culture ID panels, which we expect to launch in Europe during the second quarter and submit to the FDA later this year,” added Massarany.
GenMark Diagnostics, Inc expects revenue to be in the range of $65 million to $70 million for financial year 2017.
Operating cash flow remains negative
GenMark Diagnostics, Inc has spent $35.64 million cash to meet operating activities during the year as against cash outgo of $31.92 million in the last year.
The company has spent $24.12 million cash to meet investing activities during the year as against cash inflow of $19.32 million in the last year.
Cash flow from financing activities was $40.36 million for the year, up 262.52 percent or $29.23 million, when compared with the last year.
Cash and cash equivalents stood at $15.96 million as on Dec. 31, 2016, down 54.90 percent or $19.43 million from $35.38 million on Dec. 31, 2015.
Working capital drops significantly
GenMark Diagnostics, Inc has witnessed a decline in the working capital over the last year. It stood at $32.03 million as at Dec. 31, 2016, down 29.40 percent or $13.34 million from $45.37 million on Dec. 31, 2015. Current ratio was at 2.21 as on Dec. 31, 2016, down from 5.28 on Dec. 31, 2015.
Debt increases substantially
GenMark Diagnostics, Inc has witnessed an increase in total debt over the last one year. It stood at $19.82 million as on Dec. 31, 2016, up 108.21 percent or $10.30 million from $9.52 million on Dec. 31, 2015. Total debt was 24.67 percent of total assets as on Dec. 31, 2016, compared with 13.47 percent on Dec. 31, 2015. Debt to equity ratio was at 0.52 as on Dec. 31, 2016, up from 0.20 as on Dec. 31, 2015.
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