Revenue during the quarter went up marginally by 2.14 percent to $410 million from $401.40 million in the previous year period. Gross margin for the quarter expanded 152 basis points over the previous year period to 34.80 percent. Total expenses were 96.15 percent of quarterly revenues, up from 94.89 percent for the same period last year. That has resulted in a contraction of 125 basis points in operating margin to 3.85 percent.

Operating income for the quarter was $15.80 million, compared with $20.50 million in the previous year period.

However, the adjusted operating income for the quarter stood at $39.80 million compared to $40.90 million in the prior year period. At the same time, adjusted operating margin contracted 48 basis points in the quarter to 9.71 percent from 10.19 percent in the last year period.

"Last year we met our financial goals, completed our first acquisition and took strategic steps to advance the company's transformation into a leading Medical Devices company. Progress of our transformation is evident from the increasing shift in our portfolio to Medical Devices, which generated the majority of our operating profit," said Robert Abernathy, Halyard chairman and chief executive officer. "In 2017, we will remain focused on delivering our plan and using our strong financial position to invest in growth opportunities. I am confident in our strategy and in our team's ability to execute."

For financial year 2017, Halyard Health, Inc. projects diluted earnings per share to be in the range of $1.01 to $1.45. It projects diluted earnings per share to be in the range of $1.70 to $2 on adjusted basis for the same period.

The company has spent $200.90 million cash to meet investing activities during the year as against cash outgo of $62.60 million in the last year. It has incurred net capital expenditure of $25.90 million on net basis during the year, down 58.63 percent or $36.70 million from year ago.

The company has spent $1.40 million cash to carry out financing activities during the year as against cash outgo of $50.60 million in the last year period.

Cash and cash equivalents stood at $113.70 million as on Dec. 31, 2016, down 12.20 percent or $15.80 million from $129.50 million on Dec. 31, 2015.

Working capital drops significantly
Halyard Health, Inc. has witnessed a decline in the working capital over the last year. It stood at $269.10 million as at Dec. 31, 2016, down 25.42 percent or $91.70 million from $360.80 million on Dec. 31, 2015. Current ratio was at 1.83 as on Dec. 31, 2016, down from 2.14 on Dec. 31, 2015.

Debt remains almost stable
Total debt of Halyard Health, Inc. remained almost stable for the quarter at $579 million, when compared with the last year period. Total debt was 27.95 percent of total assets as on Dec. 31, 2016, compared with 28.90 percent on Dec. 31, 2015. Debt to equity ratio was at 0.53 as on Dec. 31, 2016, down from 0.55 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.98 for the quarter from 2.53 for the same period last year.