Iridex Corporation (IRIX) swung to a net loss for the quarter ended Apr. 01, 2017. The company has made a net loss of $1.87 million, or $ 0.16 a share in the quarter, against a net profit of $0.10 million, or $0.01 a share in the last year period.
Revenue during the quarter dropped 12.14 percent to $10.48 million from $11.93 million in the previous year period. Gross margin for the quarter contracted 180 basis points over the previous year period to 42.59 percent. Operating margin for the quarter stood at negative 17.72 percent as compared to a positive 1.27 percent for the previous year period.
Operating loss for the quarter was $1.86 million, compared with an operating income of $0.15 million in the previous year period.
“While our first quarter was marked by lower than expected financial results, we made significant progress towards the commercialization of the G6 platform," said William M. Moore, President and chief executive officer. "Our overall business was impacted by the significant expansion and transition of our sales organization over the past several months as we ramp up to meet a growing opportunity worldwide. However, I am pleased with the progress we continue to make towards the commercialization of our G6 platform, including a growing base of thought leader support, repeat customers, broadening clinical data, and global expansion. This on-going momentum fuels our confidence in the prospects for the G6 platform to transform our business for years to come."
Iridex Corp projects revenue to be in the range of $46 million to $49 million for financial year 2017.
Working capital increases sharplyIridex Corporation has recorded an increase in the working capital over the last year. It stood at $37.85 million as at Apr. 01, 2017, up 58.75 percent or $14.01 million from $23.84 million on Apr. 02, 2016. Current ratio was at 6.28 as on Apr. 01, 2017, up from 4.16 on Apr. 02, 2016. Cash conversion cycle (CCC) has decreased to 136 days for the quarter from 190 days for the last year period. Days sales outstanding went up to 79 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 89 days for the quarter compared with 153 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 34 for the same period last year.
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