Intersect ENT, Inc (XENT) saw its loss narrow to $6.23 million, or $0.22 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $9.74 million, or $0.35 a share.
Revenue during the quarter grew 29.76 percent to $18.47 million from $14.23 million in the previous year period. Gross margin for the quarter expanded 512 basis points over the previous year period to 84.90 percent. Operating margin for the quarter stood at negative 34.99 percent as compared to a negative 69.31 percent for the previous year period.
Operating loss for the quarter was $6.46 million, compared with an operating loss of $9.86 million in the previous year period.
"We are pleased to see the PROPEL products continuing to gain adoption, including expanded usage of PROPEL Mini following the recently approved frontal indication," stated Lisa Earnhardt, president and chief executive officer of Intersect ENT. "In addition to our commercial products, we advanced our pipeline considerably this quarter with the submission of the PMA-s for PROPEL Contour and the successful conclusion of the RESOLVE II trial."
2016 Outlook
The company continues to expect 2016 revenue of approximately $78 million. The company is raising its annual outlook for gross margin to approximately 83% versus prior guidance 82%-83%. The outlook for 2016 operating expenses remains approximately $92 million and net use of cash is in the range of $22-$23 million for the year. "Net use of cash" is the difference between the anticipated balances of cash and cash equivalents plus short-term investments at December 31, 2016 and the actual balances at December 31, 2015.
Working capital declinesIntersect ENT, Inc has witnessed a decline in the working capital over the last year. It stood at $113.66 million as at Sep. 30, 2016, down 13.64 percent or $17.95 million from $131.61 million on Sep. 30, 2015. Current ratio was at 9.37 as on Sep. 30, 2016, down from 10.84 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 70 days for the quarter from 75 days for the last year period. Days sales outstanding went down to 47 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has increased to 118 days for the quarter compared with 111 days for the previous year period. At the same time, days payable outstanding went up to 95 days for the quarter from 92 for the same period last year.
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