Surmodics, Inc. (SRDX) has reported 38.37 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.51 million, or $0.04 a share in the quarter, compared with $0.82 million, or $0.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.61 million, or $0.05 a share compared with $2.59 million or $0.20 a share, a year ago. Revenue during the quarter grew 4.81 percent to $17.50 million from $16.70 million in the previous year period. Gross margin for the quarter expanded 288 basis points over the previous year period to 85.36 percent. Total expenses were 90.42 percent of quarterly revenues, up from 86.59 percent for the same period last year. That has resulted in a contraction of 383 basis points in operating margin to 9.58 percent.
Operating income for the quarter was $1.68 million, compared with $2.24 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1.66 million compared to $4.05 million in the prior year period. At the same time, adjusted operating margin contracted 1480 basis points in the quarter to 9.47 percent from 24.26 percent in the last year period.
"This was an excellent quarter, both in terms of our revenue performance above expectations and the progress on our strategic initiatives,” said Gary Maharaj, president and chief executive officer of Surmodics. "We made headway in our R D pipeline for both our drug-coated balloon programs and catheter and peripheral balloon devices. These investments, we believe, will drive long-term shareholder value," concluded Maharaj.
Surmodics, Inc. forecasts revenue to be in the range of $65 million to $68 million for fiscal year 2017. For fiscal year 2017, the company expects diluted loss per share to be in the range of negative $0.02 to $0.08. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.15 to $0.25 on adjusted basis.
Working capital increasesSurmodics, Inc. has recorded an increase in the working capital over the last year. It stood at $51.63 million as at Mar. 31, 2017, up 18.93 percent or $8.22 million from $43.41 million on Mar. 31, 2016. Current ratio was at 8.66 as on Mar. 31, 2017, up from 6.22 on Mar. 31, 2016. Days sales outstanding went down to 32 days for the quarter compared with 34 days for the same period last year.
Days inventory outstanding has decreased to 59 days for the quarter compared with 103 days for the previous year period.
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