Haemonetics Corporation (HAE) saw its loss widen to $51.14 million, or $0.98 a share for the quarter ended Apr. 01, 2017. In the previous year period, the company reported a loss of $8.74 million, or $0.17 a share. On the other hand, adjusted net income for the quarter stood at $20.37 million, or $0.39 a share compared with $18.82 million or $0.37 a share, a year ago.
Revenue during the quarter dropped 5.89 percent to $228.07 million from $242.34 million in the previous year period. Gross margin for the quarter contracted 81 basis points over the previous year period to 36 percent. Operating margin for the quarter stood at negative 25.21 percent as compared to a negative 2.29 percent for the previous year period.
Operating loss for the quarter was $57.51 million, compared with an operating loss of $5.55 million in the previous year period.
However, the adjusted operating income for the quarter stood at $27.94 million compared to $25.84 million in the prior year period. At the same time, adjusted operating margin improved 159 basis points in the quarter to 12.25 percent from 10.66 percent in the last year period.
Christopher Simon, Haemonetics' chief executive officer, stated: "We achieved our revenue, profit and free cash flow objectives in fiscal 2017, while completing the first of three phases comprising our company's turnaround. We have stabilized our performance and we are advancing toward a culture of delivering on commitments."
For financial year 2018, the company forecasts diluted earnings per share to be in the range of $0.40 to $0.50. The company forecasts diluted earnings per share to be in the range of $1.55 to $1.65 on adjusted basis.
Operating cash flow improves significantly
Haemonetics Corporation has generated cash of $159.74 million from operating activities during the year, up 31.08 percent or $37.87 million, when compared with the last year.
The company has spent $73.31 million cash to meet investing activities during the year as against cash outgo of $104.77 million in the last year. It has incurred net capital expenditure of $73.31 million on net basis during the year, down 27.96 percent or $28.46 million from year ago.
The company has spent $60.41 million cash to carry out financing activities during the year as against cash outgo of $62.62 million in the last year period.
Cash and cash equivalents stood at $139.56 million as on Apr. 01, 2017, up 21.23 percent or $24.44 million from $115.12 million on Apr. 02, 2016.
Debt comes down
Haemonetics Corporation has recorded a decline in total debt over the last one year. It stood at $314.65 million as on Apr. 01, 2017, down 22.88 percent or $93.35 million from $408 million on Apr. 02, 2016.
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