The Spectranetics Corporation (SPNC) saw its loss widen to $18.52 million, or $0.43 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $17.29 million, or $0.40 a share. Revenue during the quarter grew 10.81 percent to $69.68 million from $62.88 million in the previous year period. Gross margin for the quarter contracted 33 basis points over the previous year period to 74.09 percent. Operating margin for the quarter stood at negative 21.50 percent as compared to a negative 22.13 percent for the previous year period.
Operating loss for the quarter was $14.98 million, compared with an operating loss of $13.92 million in the previous year period.
“Q1 was another strong quarter for Spectranetics, evidenced by double-digit revenue growth in both of our business units,” said Scott Drake, president and chief executive officer. “We are driving growth globally in our effort to improve patients’ lives. In addition to the solid top-line performance, we continue to make progress on our innovation pipeline and are focused on the opportunities that lie ahead.”
Spectranetics Corp forecasts revenue to be in the range of $293 million to $306 million for fiscal year 2017. For financial year 2017, Spectranetics Corp projects net income to be in the range of $57 million to $63 million. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.31 to $1.43.
Working capital drops significantly
The Spectranetics Corporation has witnessed a decline in the working capital over the last year. It stood at $57.27 million as at Mar. 31, 2017, down 33.48 percent or $28.82 million from $86.08 million on Mar. 31, 2016. Current ratio was at 1.87 as on Mar. 31, 2017, down from 2.49 on Mar. 31, 2016. Days sales outstanding went down to 56 days for the quarter compared with 63 days for the same period last year.
Days inventory outstanding has decreased to 72 days for the quarter compared with 146 days for the previous year period.
Debt increases substantially
The Spectranetics Corporation has witnessed an increase in total debt over the last one year. It stood at $312.14 million as on Mar. 31, 2017, up 293.95 percent or $232.91 million from $79.23 million on Mar. 31, 2016. Total debt was 75.08 percent of total assets as on Mar. 31, 2017, compared with 17.59 percent on Mar. 31, 2016. Debt to equity ratio was at 5.16 as on Mar. 31, 2017, up from 0.75 as on Mar. 31, 2016.
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