Revenue during the quarter dropped 3.27 percent to $177.50 million from $183.50 million in the previous year period. Gross margin for the quarter contracted 264 basis points over the previous year period to 77.46 percent. Total expenses were 96.51 percent of quarterly revenues, up from 76.40 percent for the same period last year. That has resulted in a contraction of 2010 basis points in operating margin to 3.49 percent.

Operating income for the quarter was $6.20 million, compared with $43.30 million in the previous year period.

However, the adjusted operating income for the quarter stood at $21.60 million compared to $46.50 million in the prior year period. At the same time, adjusted operating margin contracted 1317 basis points in the quarter to 12.17 percent from 25.34 percent in the last year period.

“We were pleased with the first quarter as our hereditary cancer business returned to more normal volume trends, and we secured important endorsements from physician networks representing 70 percent of community oncologists in the United States,” said Mark C. Capone, president and chief executive officer of Myriad. “In addition, our newest tests, Genesight, EndoPredict, and Prolaris all exceeded 50 percent growth rates, and we successfully completed PARP inhibitor studies with the first prospective validation of myChoice HRD and an additional validation for BracAnalysis CDx. We remain committed to transforming Myriad into a larger and more diversified personalized medicine company and delivering upon our five-year strategic goals.”

For the second-quarter, Myriad Genetics expects revenue to be in the range of $188 million to $190 million. Myriad Genetics expects revenue to be in the range of $740 million to $760 million for financial year 2017. The company projects diluted earnings per share to be in the range of $0.06 to $0.08 for the second-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $0.34 to $0.44. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.23 to $0.25 for the second-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $1 to $1.10 on adjusted basis.

The company has spent $158 million cash to meet investing activities during the quarter as against cash inflow of $9 million in the last year period.

Cash flow from financing activities was $175.80 million for the quarter as against cash outgo of $15.20 million in the last year period.

Cash and cash equivalents stood at $86.90 million as on Sep. 30, 2016, down 0.57 percent or $0.50 million from $87.40 million on Sep. 30, 2015.

Working capital drops significantly
Myriad Genetics Inc has witnessed a decline in the working capital over the last year. It stood at $48 million as at Sep. 30, 2016, down 80.67 percent or $200.30 million from $248.30 million on Sep. 30, 2015. Current ratio was at 1.17 as on Sep. 30, 2016, down from 5.21 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 64 days for the quarter from 72 days for the last year period. Days sales outstanding went up to 49 days for the quarter compared with 43 days for the same period last year.

Days inventory outstanding has decreased to 62 days for the quarter compared with 75 days for the previous year period. At the same time, days payable outstanding was almost stable at 47 days for the quarter, when compared with the previous year period.