Lannett Company Inc (LCI) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $29.41 million, or $ 0.80 a share in the quarter, against a net profit of $33.18 million, or $0.89 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $28.99 million, or $0.77 a share compared with $37.07 million or $0.99 a share, a year ago.
Revenue during the quarter surged 51.79 percent to $161.56 million from $106.43 million in the previous year period. Gross margin for the quarter contracted 2208 basis points over the previous year period to 50.66 percent. Operating margin for the quarter stood at negative 12.57 percent as compared to a positive 48.31 percent for the previous year period.
Operating loss for the quarter was $20.31 million, compared with an operating income of $51.42 million in the previous year period.
However, the adjusted operating income for the quarter stood at $60.75 million compared to $57.34 million in the prior year period. At the same time, adjusted operating margin contracted 1628 basis points in the quarter to 37.60 percent from 53.88 percent in the last year period.
"We are pleased to report in our fiscal 2017 first quarter a topline increase of 52 percent, which was largely due to the addition of KU’s operations," said Arthur Bedrosian, chief executive officer of Lannett. "Net sales were approximately $162 million compared with $106 million in the same period last year. Our first quarter performance includes strong sales on certain products, offset by the effect of competitive pressure on a number of our other products. In addition, contract manufacturing revenues were lower than anticipated due to timing of product shipments.
For financial year 2017, Lannett CompanyInc expects revenue to be in the range of $675 million to $685 million. The Company expects adjusted revenue to be in the range of $675 million to $685 million.
Working capital declines
Lannett Company Inc has witnessed a decline in the working capital over the last year. It stood at $333.46 million as at Sep. 30, 2016, down 7.41 percent or $26.68 million from $360.15 million on Sep. 30, 2015. Current ratio was at 2.07 as on Sep. 30, 2016, down from 9.94 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 117 days for the quarter from 173 days for the last year period. Days sales outstanding went down to 80 days for the quarter compared with 86 days for the same period last year.
Days inventory outstanding has decreased to 74 days for the quarter compared with 145 days for the previous year period. At the same time, days payable outstanding went down to 36 days for the quarter from 58 for the same period last year.
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