Insulet Corporation (PODD) saw its loss narrow to $9.98 million, or $0.17 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $12.48 million, or $0.22 a share.
Revenue during the quarter grew 25.24 percent to $101.71 million from $81.21 million in the previous year period. Gross margin for the quarter expanded 416 basis points over the previous year period to 58.40 percent. Operating margin for the quarter stood at negative 5.22 percent as compared to a negative 9.48 percent for the previous year period.
Operating loss for the quarter was $5.31 million, compared with an operating loss of $7.70 million in the previous year period.
"Every area of our business showed strong momentum and outstanding performance in the first quarter," said Patrick Sullivan, Chairman and Chief Executive Officer. "We continued to execute on our commercial and operational strategies and made great headway on our key initiatives, including our manufacturing and supply chain efforts. This operational progress is driving high product quality, which supports a strong and always improving customer experience. We are investing in innovation to ensure our significant product differentiation and strong business model continue to position Insulet for success in the diabetes and drug delivery markets."
For financial year 2017, Insulet Corp expects revenue to be in the range of $425 million to $440 million.
For the second-quarter, Insulet Corp expects revenue to be in the range of $104 million to $108 million.
Working capital increases sharply
Insulet Corp has recorded an increase in the working capital over the last year. It stood at $297.79 million as at Mar. 31, 2017, up 143.95 percent or $175.72 million from $122.07 million on Mar. 31, 2016. Current ratio was at 8.56 as on Mar. 31, 2017, up from 3.45 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 49 days for the quarter from 45 days for the last year period. Days sales outstanding went down to 39 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has increased to 37 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 39 for the same period last year.
Debt increases substantially
Insulet Corp has witnessed an increase in total debt over the last one year. It stood at $336.76 million as on Mar. 31, 2017, up 89.06 percent or $158.63 million from $178.13 million on Mar. 31, 2016. Total debt was 75.68 percent of total assets as on Mar. 31, 2017, compared with 69.92 percent on Mar. 31, 2016. Debt to equity ratio was at 5.30 as on Mar. 31, 2017, down from 6.75 as on Mar. 31, 2016.
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
