iCAD, Inc. (ICAD) saw its loss widen to $2.66 million, or $0.17 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.40 million, or $0.03 a share. On the other hand, adjusted net loss for the quarter widened to $2.59 million, or $0.16 a share from a loss of $0.40 million or $0.03 a share, a year ago.
Revenue during the quarter plunged 37.35 percent to $6 million from $9.58 million in the previous year period. Gross margin for the quarter contracted 287 basis points over the previous year period to 68.32 percent. Operating margin for the quarter stood at negative 44.18 percent as compared to a negative 3.59 percent for the previous year period.
Operating loss for the quarter was $2.65 million, compared with an operating loss of $0.34 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.55 million compared with $0.74 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 25.80 percent for the quarter compared to 7.71 percent in the last year period.
"Our third quarter results reflect lower than anticipated Therapy system sales, however we continue to see good progress with one of our key growth drivers for the Therapy business heading into 2017 ��" substantially increasing the number of dermatology practices that offer our electronic brachytherapy solution for the treatment of non-melanoma skin cancer," said Ken Ferry, Chief Executive Officer. "Also in our Cancer Therapy business, we continue to experience strong IORT procedure volume growth year to date, particularly in international markets, and we expect to enter several new geographies in 2017 that will further expand our market opportunity.
Operating cash flow remains negative
iCAD, Inc. has spent $3.86 million cash to meet operating activities during the nine month period as against cash outgo of $0.02 million in the last year period.
The company has spent $0.26 million cash to meet investing activities during the nine month period as against cash outgo of $2.63 million in the last year period.
The company has spent $0.67 million cash to carry out financing activities during the nine month period as against cash outgo of $12.03 million in the last year period.
Cash and cash equivalents stood at $10.48 million as on Sep. 30, 2016, down 40.22 percent or $7.05 million from $17.54 million on Sep. 30, 2015.
Working capital drops significantly
iCAD, Inc.has witnessed a decline in the working capital over the last year. It stood at $8.07 million as at Sep. 30, 2016, down 48.20 percent or $7.51 million from $15.57 million on Sep. 30, 2015. Current ratio was at 1.63 as on Sep. 30, 2016, down from 2.05 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 127 days for the quarter from 140 days for the last year period. Days sales outstanding went up to 96 days for the quarter compared with 78 days for the same period last year.
Days inventory outstanding has decreased to 107 days for the quarter compared with 118 days for the previous year period. At the same time, days payable outstanding went up to 75 days for the quarter from 56 for the same period last year.
Debt comes down significantly
iCAD, Inc. has recorded a decline in total debt over the last one year. It stood at $0.24 million as on Sep. 30, 2016, down 82.52 percent or $1.16 million from $1.40 million on Sep. 30, 2015. Total debt was 0.59 percent of total assets as on Sep. 30, 2016, compared with 2.71 percent on Sep. 30, 2015. Debt to equity ratio was at 0.01 as on Sep. 30, 2016, down from 0.04 as on Sep. 30, 2015.
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