Revenue during the quarter went up marginally by 2.31 percent to $829.90 million from $811.20 million in the previous year period. Gross margin for the quarter contracted 187 basis points over the previous year period to 53.72 percent. Operating margin for the quarter stood at negative 24.92 percent as compared to a positive 19.98 percent for the previous year period.

Operating loss for the quarter was $206.80 million, compared with an operating income of $162.10 million in the previous year period.

“Mallinckrodt’s transition period results were solid, driven by predominantly volume-based growth in our diversified Specialty Brands segment, which continued to contribute greater than 70% of our total net sales. By focusing on execution, we are making good progress in building a leading specialty pharmaceutical company, creating near- and long-term value for patients with high unmet medical needs,” said Mark Trudeau, President and Chief Executive Officer. “Our Acquire to Invest strategy is evident in our focus on portfolio transformation and in developing a robust, organic Specialty Brands pipeline, including investigational products like StrataGraft® skin substitute and Terlipressin - potentially transformative therapies that, if approved, may deliver significant, even life-changing benefits for patients.”

For financial year 2017, the company forecasts diluted earnings per share to be in the range of $7.40 to $8 on adjusted basis.

The company has spent $77.20 million cash to meet investing activities during the quarter as against cash inflow of $215.60 million in the last year period.

The company has spent $53.90 million cash to carry out financing activities during the quarter as against cash outgo of $369.50 million in the last year period.

Cash and cash equivalents stood at $342 million as on Dec. 30, 2016, down 34.47 percent or $179.90 million from $521.90 million on Dec. 25, 2015.

Working capital drops significantly
Mallinckrodt Plc has witnessed a decline in the working capital over the last year. It stood at $259.30 million as at Dec. 30, 2016, down 64.82 percent or $477.80 million from $737.10 million on Dec. 25, 2015. Current ratio was at 1.20 as on Dec. 30, 2016, down from 1.83 on Dec. 25, 2015.

Cash conversion cycle (CCC) has decreased to 66 days for the quarter from 98 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 42 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding went down to 29 days for the quarter from 32 for the same period last year.