Sharps Compliance Corporation (SMED) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.23 million, or $ 0.01 a share in the quarter, against a net profit of $0.62 million, or $0.04 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $0.23 million, or $0.01 a share compared with a net profit of $0.69 million, or $0.04 a share in the last year period. Revenue during the quarter went down marginally by 2.85 percent to $9.71 million from $9.99 million in the previous year period. Gross margin for the quarter contracted 339 basis points over the previous year period to 29.82 percent. Operating margin for the quarter stood at negative 2.10 percent as compared to a positive 6.65 percent for the previous year period.
Operating loss for the quarter was $0.20 million, compared with an operating income of $0.66 million in the previous year period.
David P. Tusa, president and chief executive officer of Sharps, stated, “For the December 2016 quarter, we were faced with a negative comparison to the prior year in the Retail and Pharmaceutical Manufacturer markets of about $2.4 million. We were able to offset this somewhat with strength in other markets including Professional and Government.”
Working capital drops significantly
Sharps Compliance Corporation has witnessed a decline in the working capital over the last year. It stood at $7.85 million as at Dec. 31, 2016, down 58.16 percent or $10.92 million from $18.77 million on Dec. 31, 2015. Current ratio was at 1.77 as on Dec. 31, 2016, down from 3.94 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 49 days for the quarter from 79 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 30 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding went up to 31 days for the quarter from 22 for the same period last year.
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