TearLab Corporation (TEAR) saw its loss narrow to $3.98 million, or $0.07 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $8.06 million, or $0.24 a share.
Revenue during the quarter grew 9.24 percent to $7.22 million from $6.61 million in the previous year period. Gross margin for the quarter expanded 702 basis points over the previous year period to 57.21 percent.
Operating loss for the quarter was $2.94 million, compared with an operating loss of $7.54 million in the previous year period.
“During the quarter, and despite the slower summer season, we began to see the anticipated growth in sales following a strategic shift in our commercial model. Our restructured sales force, which has become smaller and more effective, has done an excellent job of reorganizing accounts in order to make the use of our devices more efficient,” said Seph Jensen, TearLab’s chief executive officer. “Our focus on clinical value and growing utilization is reflected in our results, and we expect to see continued growth from both expansion and productivity gains in our device footprint.”
Working capital increases sharply
TearLab Corporation has recorded an increase in the working capital over the last year. It stood at $18.99 million as at Sep. 30, 2016, up 81.88 percent or $8.55 million from $10.44 million on Sep. 30, 2015. Current ratio was at 4.65 as on Sep. 30, 2016, up from 2.39 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 24 days for the quarter from 71 days for the last year period. Days sales outstanding went down to 30 days for the quarter compared with 32 days for the same period last year.
Days inventory outstanding has decreased to 51 days for the quarter compared with 109 days for the previous year period. At the same time, days payable outstanding went down to 56 days for the quarter from 70 for the same period last year.
Debt increases substantially
TearLab Corporation has witnessed an increase in total debt over the last one year. It stood at $25.99 million as on Sep. 30, 2016, up 73.41 percent or $11 million from $14.99 million on Sep. 30, 2015. Tearlab Corp has witnessed an increase in long-term debt over the last one year. It stood at $25.99 million as on Sep. 30, 2016, up 73.41 percent or $11 million from $14.99 million on Sep. 30, 2015. Total debt was 88.18 percent of total assets as on Sep. 30, 2016, compared with 57.13 percent on Sep. 30, 2015.
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