NeuroMetrix, Inc (NEO) saw its loss narrow to $0.07 million, or $0.07 a share for the quarter ended Sep. 30, 2016. Neogenomics (NEO) saw its loss narrow to $0.07 million in the quarter ended compared with $0.12 million, a year ago. On the other hand, adjusted net income for the quarter stood at $3.44 million, or $0.04 a share compared with $0.86 million or $0.01 a share, a year ago. Revenue during the quarter surged 141.83 percent to $60.76 million from $25.13 million in the previous year period. Gross margin for the quarter expanded 54 basis points over the previous year period to 45 percent. Total expenses were 97.70 percent of quarterly revenues, down from 99.55 percent for the same period last year. This has led to an improvement of 184 basis points in operating margin to 2.30 percent.
Operating income for the quarter was $1.40 million, compared with $0.11 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.12 million compared with $2.82 million in the prior year period. At the same time, adjusted EBITDA margin improved 380 basis points in the quarter to 15.01 percent from 11.21 percent in the last year period.
Douglas M. VanOort, the Company's chairman and chief executive officer, commented, "We are particularly pleased with our Clinical Division performance in Quarter 3. We began migrating Clarient clients to the NeoGenomics Laboratory Information System (LIS) in July with a goal of 100% client retention. Our Sales and Operating Teams have been working tirelessly to make this happen. Their efforts are paying off, as half of the Clarient accounts have now been successfully migrated and retention rates are outstanding. We expect to finish this migration process in the fourth quarter and are looking forward to moving our focus back to closing the large number of accounts in our sales pipeline."
Neogenomics expects revenue to be in the range of $245 million to $250 million for financial year 2016. For the fiscal year 2016, Neogenomics projects adjusted net income to be in the range of $13 million to $15 million. For financial year 2016, the company projects diluted loss per share to be in the range of $0.28 to $0.27. For financial year 2016, the company projects diluted earnings per share to be in the range of $0.14 to $0.16 on adjusted basis.
Operating cash flow improves significantly
NeuroMetrix, Inc has generated cash of $21.72 million from operating activities during the nine month period, up 408.38 percent or $17.45 million, when compared with the last year period. The company has spent $5.33 million cash to meet investing activities during the nine month period as against cash outgo of $1.68 million in the last year period.
The company has spent $10.88 million cash to carry out financing activities during the nine month period as against cash outgo of $2.31 million in the last year period.
Cash and cash equivalents stood at $28.94 million as on Sep. 30, 2016, down 14.81 percent or $5.03 million from $33.97 million on Sep. 30, 2015.
Working capital increases sharply
NeuroMetrix, Inc has recorded an increase in the working capital over the last year. It stood at $57.17 million as at Sep. 30, 2016, up 25.56 percent or $11.64 million from $45.53 million on Sep. 30, 2015. Current ratio was at 2.62 as on Sep. 30, 2016, down from 3.97 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 63 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 78 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 21 days for the previous year period. At the same time, days payable outstanding went up to 49 days for the quarter from 37 for the same period last year.
Debt increases substantially
NeuroMetrix, Inc has witnessed an increase in total debt over the last one year. It stood at $63.35 million as on Sep. 30, 2016, up 536.96 percent or $53.41 million from $9.95 million on Sep. 30, 2015. Total debt was 17.82 percent of total assets as on Sep. 30, 2016, compared with 11.88 percent on Sep. 30, 2015. Debt to equity ratio was at 0.32 as on Sep. 30, 2016, up from 0.16 as on Sep. 30, 2015. Interest coverage ratio improved to 0.95 for the quarter from 0.48 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
