Insulet Corporation (PODD) saw its loss narrow to $9.12 million, or $0.16 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $27.33 million, or $0.48 a share.
Revenue during the quarter grew 23.60 percent to $103.58 million from $83.80 million in the previous year period. Gross margin for the quarter expanded 872 basis points over the previous year period to 58.83 percent. Operating margin for the quarter stood at negative 3.99 percent as compared to a negative 15.06 percent for the previous year period.
Operating loss for the quarter was $4.14 million, compared with an operating loss of $12.62 million in the previous year period.
"We continue to successfully execute on our strategy as evidenced by our 2016 revenue results, which exceeded our expectations," said Patrick Sullivan, chairman and chief executive officer. "With our differentiated platform and outstanding commercial and operational execution, we achieved significant growth across all business lines, driving 39% revenue growth and a seven-point gross margin improvement year-over-year."
For the first-quarter 2017, Insulet Corporation expects revenue to be in the range of $96 million to $99 million.
For financial year 2017, Insulet Corporation expects revenue to be in the range of $420 million to $440 million.
Working capital increases sharply
Insulet Corporation has recorded an increase in the working capital over the last year. It stood at $314.26 million as at Dec. 31, 2016, up 150.20 percent or $188.66 million from $125.60 million on Dec. 31, 2015. Current ratio was at 6.64 as on Dec. 31, 2016, up from 2.93 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 37 days for the quarter from 20 days for the last year period. Days sales outstanding went down to 13 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has increased to 38 days for the quarter compared with 13 days for the previous year period. At the same time, days payable outstanding went down to 14 days for the quarter from 17 for the same period last year.
Debt increases substantially
Insulet Corporation has witnessed an increase in total debt over the last one year. It stood at $333.04 million as on Dec. 31, 2016, up 87.64 percent or $155.55 million from $177.49 million on Dec. 31, 2015. Total debt was 72.93 percent of total assets as on Dec. 31, 2016, compared with 64.51 percent on Dec. 31, 2015. Debt to equity ratio was at 5.27 as on Dec. 31, 2016, up from 5.21 as on Dec. 31, 2015.
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