Psychemedics Corporation (PMD) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $1.50 million in the quarter, against a net loss of $0.02 million in the last year period. Revenue during the quarter surged 53.13 percent to $10.21 million from $6.67 million in the previous year period. Gross margin for the quarter expanded 1100 basis points over the previous year period to 52.07 percent. Operating margin for the quarter period stood at positive 22.22 percent as compared to a negative 0.01 percent for the previous year period.
Raymond C. Kubacki, chairman and chief executive officer, said, "This quarter was a record for revenue and earnings for any first quarter in the Company's history. The significant growth for the quarter was driven by our international business, specifically professional driver testing in Brazil. Additionally, we also continued to see pick-up in our domestic business, with especially robust growth in the Oil & Gas sector.
Working capital increases sharply
Psychemedics Corporation has recorded an increase in the working capital over the last year. It stood at $7.17 million as at Mar. 31, 2017, up 70.16 percent or $2.96 million from $4.21 million on Mar. 31, 2016. Current ratio was at 2.54 as on Mar. 31, 2017, up from 2.02 on Mar. 31, 2016. Days sales outstanding went down to 36 days for the quarter compared with 63 days for the same period last year.
At the same time, days payable outstanding went down to 13 days for the quarter from 24 for the same period last year.
Debt comes down significantly
Psychemedics Corporation has recorded a decline in total debt over the last one year. It stood at $3.10 million as on Mar. 31, 2017, down 49.23 percent or $3 million from $6.10 million on Mar. 31, 2016. Total debt was 12.05 percent of total assets as on Mar. 31, 2017, compared with 27.26 percent on Mar. 31, 2016. Debt to equity ratio was at 0.19 as on Mar. 31, 2017, down from 0.55 as on Mar. 31, 2016.
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