Myriad Genetics (MYGN) has reported 84.10 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $5.90 million, or $0.09 a share in the quarter, compared with $37.10 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $17.50 million, or $0.26 a share compared with $33.50 million or $0.45 a share, a year ago. 

Revenue during the quarter went up marginally by 1.66 percent to $196.50 million from $193.30 million in the previous year period. Gross margin for the quarter contracted 159 basis points over the previous year period to 77.40 percent. Total expenses were 93.28 percent of quarterly revenues, up from 76.62 percent for the same period last year. That has resulted in a contraction of 1667 basis points in operating margin to 6.72 percent.

Operating income for the quarter was $13.20 million, compared with $45.20 million in the previous year period.

However, the adjusted operating income for the quarter stood at $23.60 million compared to $48.40 million in the prior year period. At the same time, adjusted operating margin contracted 1303 basis points in the quarter to 12.01 percent from 25.04 percent in the last year period.

"Revenues this quarter reached their highest level in the last three years, driven by a return to sequential growth in hereditary cancer revenue and strong results from GeneSight," said Mark C. Capone, president and chief executive officer, Myriad Genetics. "Importantly, our diversification strategy is working with new products now contributing more than two thirds of testing volume. We also made steady progress on increasing reimbursement that will ultimately unlock significant operating leverage and long-term shareholder value."

For the third-quarter, Myriad Genetics expects revenue to be in the range of $188 million to $190 million. The company projects diluted earnings per share to be in the range of $0.08 to $0.10.  On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.23 to $0.25. 

For financial year 2017, Myriad Genetics expects revenue to be in the range of $745 million to $755 million.  The company projects diluted earnings per share to be in the range of $0.31 to $0.36, the company projects diluted earnings per share to be in the range of $1 to $1.05 on adjusted basis.

The company has spent $160.10 million cash to meet investing activities during the first six months as against cash outgo of $31.50 million in the last year period.

Cash flow from financing activities was $171.80 million for the first six months, up 680.91 percent or $149.80 million, when compared with the last year period.

Cash and cash equivalents stood at $108.10 million as on Dec. 31, 2016, down 19.75 percent or $26.60 million from $134.70 million on Dec. 31, 2015.

Working capital declines
Myriad Genetics has witnessed a decline in the working capital over the last year. It stood at $258.80 million as at Dec. 31, 2016, down 16.41 percent or $50.80 million from $309.60 million on Dec. 31, 2015. Current ratio was at 4.13 as on Dec. 31, 2016, down from 5.70 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 59 days for the quarter from 77 days for the last year period. Days sales outstanding went up to 46 days for the quarter compared with 42 days for the same period last year.

Days inventory outstanding has decreased to 53 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding went up to 40 days for the quarter from 37 for the same period last year.