Surmodics, Inc (SRDX) has reported 13.31 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $2.30 million, or $0.17 a share in the quarter, compared with $2.65 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.58 million, or $0.19 a share compared with $5.16 million or $0.39 a share, a year ago. Revenue during the quarter grew 7.38 percent to $17.76 million from $16.54 million in the previous year period. Gross margin for the quarter contracted 49 basis points over the previous year period to 85.20 percent. Total expenses were 81.60 percent of quarterly revenues, up from 76.19 percent for the same period last year. That has resulted in a contraction of 541 basis points in operating margin to 18.40 percent.
Operating income for the quarter was $3.27 million, compared with $3.94 million in the previous year period.
However, the adjusted operating income for the quarter stood at $4.30 million compared to $6.89 million in the prior year period. At the same time, adjusted operating margin contracted 1746 basis points in the quarter to 24.22 percent from 41.67 percent in the last year period.
“The Surmodics team made meaningful investments in our whole-product strategy while delivering top-line growth in the first quarter of fiscal 2017,” said Gary Maharaj, president and chief executive officer. “We believe that we are well-positioned for future growth as we remain on track to continue the clinical evaluation of our SurVeil™ drug-coated balloon (“DCB”) and prepare for regulatory submission of several proprietary products in the next few months.”
Surmodics, Inc expects revenue to be in the range of $64 million to $68 million for financial year 2017. For financial year 2017, the company projects diluted loss per share to be in the range of negative $0.07 to $0.08. For financial year 2017, the company projects diluted earnings per share to be in the range of $0.18 to $0.33 on adjusted basis.
Working capital increases
Surmodics, Inc has recorded an increase in the working capital over the last year. It stood at $50.71 million as at Dec. 31, 2016, up 6.47 percent or $3.08 million from $47.63 million on Dec. 31, 2015. Current ratio was at 9.55 as on Dec. 31, 2016, up from 9.49 on Dec. 31, 2015. Days sales outstanding were almost stable at 36 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 61 days for the quarter compared with 122 days for the previous year period.
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