Insulet Corporation (PODD) saw its loss narrow to $3.08 million, or $0.05 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $18.93 million, or $0.34 a share.
Revenue during the quarter surged 32.89 percent to $94.87 million from $71.39 million in the previous year period. Gross margin for the quarter expanded 1443 basis points over the previous year period to 58.65 percent. Operating margin for the quarter period stood at positive 2.55 percent as compared to a negative 20.72 percent for the previous year period.
Operating income for the quarter was $2.42 million, compared with an operating loss of $14.80 million in the previous year period.
"We are extremely pleased with our continuing positive momentum and the results our team is achieving through consistent execution of our winning strategy," said Patrick Sullivan, chairman and chief executive officer. "We continued to achieve growth across all business lines, generating better-than-anticipated revenue and driving additional gross margin expansion in the third quarter. We are successfully implementing our commercial and operational initiatives, as well as continuing to take steps forward in our product pipeline development efforts, including our artificial pancreas program. Longer-term, we remain focused on delivering sustainable and profitable growth and increasing value for our shareholders."
For the fourth-quarter, Insulet Corp forecasts revenue to be in the range of $99 million to $102 million.
For fiscal year 2016, Insulet Corp forecasts revenue to be in the range of $362 million to $365 million.
Working capital increases sharplyInsulet Corporation has recorded an increase in the working capital over the last year. It stood at $307.56 million as at Sep. 30, 2016, up 127.99 percent or $172.65 million from $134.90 million on Sep. 30, 2015. Current ratio was at 6.67 as on Sep. 30, 2016, up from 3.27 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 30 days for the quarter from 44 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 41 days for the same period last year.
Days inventory outstanding has decreased to 38 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 39 for the same period last year.
Debt increases substantiallyInsulet Corporation has witnessed an increase in total debt over the last one year. It stood at $330.02 million as on Sep. 30, 2016, up 82.38 percent or $149.07 million from $180.95 million on Sep. 30, 2015. Total debt was 72.82 percent of total assets as on Sep. 30, 2016, compared with 61.73 percent on Sep. 30, 2015. Debt to equity ratio was at 5.07 as on Sep. 30, 2016, up from 3.28 as on Sep. 30, 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
