Peregrine Pharmaceuticals (PPHM) saw its loss narrow to $4.06 million, or $0.02 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $13.20 million, or $0.07 a share.
Revenue during the quarter surged 145.41 percent to $23.37 million from $9.52 million in the previous year period. Gross margin for the quarter contracted 1629 basis points over the previous year period to 33.93 percent.
Operating loss for the quarter was $4.08 million, compared with an operating loss of $13.82 million in the previous year period.
The Avid business is on track to continue its revenue growth this fiscal year as we move toward overall profitability within the next 18 months. Our two facilities have the potential to generate in excess of $80 million in revenue, leaving additional capacity for revenue growth beyond fiscal year 2017 revenue guidance," stated Steven W. King, president and chief executive officer of Peregrine. "We are moving forward with our plans to construct a third manufacturing facility, with an eye toward efficiencies that will reduce the overall cost of construction and operation. While this may delay the new facility launch until later in calendar year 2017, we currently have adequate existing capacity to continue meeting the needs of our current clients while also bringing in new customers so we do not expect it to impact our near-term ability to grow top-line revenue as originally planned. Independently, Avid is a successful and growing CDMO business generating significant revenue and one of our key goals going forward is to help ensure that its value is appropriately represented in the market cap of our overall business."
Working capital drops significantlyPeregrine Pharmaceuticals has witnessed a decline in the working capital over the last year. It stood at $16.34 million as at Oct. 31, 2016, down 65.22 percent or $30.65 million from $47 million on Oct. 31, 2015. Current ratio was at 1.25 as on Oct. 31, 2016, down from 2.11 on Oct. 31, 2015. Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 84 days for the last year period. Days sales outstanding went down to 15 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has decreased to 77 days for the quarter compared with 223 days for the previous year period. At the same time, days payable outstanding went down to 64 days for the quarter from 162 for the same period last year.
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