Genomic Health, Inc (GHDX) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $1.35 million, or $ 0.04 a share in the quarter, against a net loss of $2.74 million, or $0.08 a share in the last year period. Revenue during the quarter grew 10.13 percent to $82.74 million from $75.13 million in the previous year period. Gross margin for the quarter expanded 306 basis points over the previous year period to 84.07 percent. Operating margin for the quarter period stood at positive 1.80 percent as compared to a negative 4.11 percent for the previous year period.
Operating income for the quarter was $1.49 million, compared with an operating loss of $3.09 million in the previous year period.
“In 2016, we delivered double-digit revenue and test growth for the year, and achieved profitability in the fourth quarter,” said Kim Popovits, chairman of the board, chief executive officer and president of Genomic Health. “With substantial opportunity for growth in our global breast and U.S. prostate business and leverage of our unique commercial channel with the planned launch this year of Oncotype DX AR-V7 Nucleus Detect™, we expect to continue to deliver long-term revenue growth with improved profitability.”
Genomic Health, Inc expects revenue to be in the range of $355 million to $370 million for financial year 2017.
Working capital increases marginally
Genomic Health, Inc has recorded an increase in the working capital over the last year. It stood at $104.79 million as at Dec. 31, 2016, up 4.50 percent or $4.51 million from $100.28 million on Dec. 31, 2015. Current ratio was at 3.54 as on Dec. 31, 2016, up from 3.35 on Dec. 31, 2015. Days sales outstanding went down to 20 days for the quarter compared with 23 days for the same period last year.
At the same time, days payable outstanding went down to 10 days for the quarter from 28 for the same period last year.
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