Haemonetics Corporation (HAE) has reported 54.12 percent jump in profit for the quarter ended Oct. 01, 2016. The company has earned $19.82 million, or $0.38 a share in the quarter, compared with $12.86 million, or $0.25 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $23.52 million, or $0.46 a share compared with $22.54 million or $0.44 a share, a year ago. Revenue during the quarter went up marginally by 0.25 percent to $220.25 million from $219.69 million in the previous year period. Gross margin for the quarter contracted 60 basis points over the previous year period to 47.33 percent. Total expenses were 88.74 percent of quarterly revenues, down from 91.27 percent for the same period last year. This has led to an improvement of 253 basis points in operating margin to 11.26 percent.
Operating income for the quarter was $24.79 million, compared with $19.18 million in the previous year period.
However, the adjusted operating income for the quarter stood at $33.44 million compared to $33.11 million in the prior year period. At the same time, adjusted operating margin improved 11 basis points in the quarter to 15.18 percent from 15.07 percent in the last year period.
Christopher Simon, Haemonetics chief executive officer, stated: "Our first half revenue achievement and cost reduction initiatives position us well to achieve our full year projections. The June leukoreduction filter recall had a modest negative revenue impact in the second quarter and added $4 million of expenses in the first half.
Haemonetics Corporation expects revenue to be in the range of $850 million to $875 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $0.70 to $0.80.
Operating cash flow improves significantlyHaemonetics Corporation has generated cash of $69.96 million from operating activities during the first half, up 90.31 percent or $33.20 million, when compared with the last year period. The company has spent $41.43 million cash to meet investing activities during the first six months as against cash outgo of $52.84 million in the last year period. It has incurred net capital expenditure of $41.43 million on net basis during the first six months, down 16.88 percent or $8.41 million from year ago period.
The company has spent $4.58 million cash to carry out financing activities during the first six months as against cash outgo of $43.98 million in the last year period.
Cash and cash equivalents stood at $138.87 million as on Oct. 01, 2016, up 38.53 percent or $38.62 million from $100.25 million on Sep. 26, 2015.
Working capital remains almost stable
Working capital of Haemonetics Corporation remained almost stable for the quarter at $313.72 million, when compared with the previous year period. Current ratio was at 2.58 as on Oct. 01, 2016, down from 2.66 on Sep. 26, 2015.
Days sales outstanding went up to 60 days for the quarter compared with 59 days for the same period last year.
Debt comes down
Haemonetics Corporation has recorded a decline in total debt over the last one year. It stood at $388.05 million as on Oct. 01, 2016, down 10.65 percent or $46.25 million from $434.31 million on Sep. 26, 2015. Total debt was 29.07 percent of total assets as on Oct. 01, 2016, compared with 30.61 percent on Sep. 26, 2015. Debt to equity ratio was at 0.52 as on Oct. 01, 2016, down from 0.56 as on Sep. 26, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
