Veracyte, Inc (VCYT) saw its loss narrow to $8.22 million, or $0.24 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.08 million, or $0.36 a share.
Revenue during the quarter grew 21.27 percent to $16.43 million from $13.55 million in the previous year period. Gross margin for the quarter expanded 802 basis points over the previous year period to 61.68 percent. Operating margin for the quarter stood at negative 45.75 percent as compared to a negative 71.96 percent for the previous year period.
Operating loss for the quarter was $7.52 million, compared with an operating loss of $9.75 million in the previous year period.
"We sustained strong revenue growth during the quarter and executed on key milestones driving momentum across our business," said Bonnie Anderson, Veracyte's chief executive officer and chairman. "We increased payer coverage and in-network contracts for the Afirma GEC, are on track with implementation of our Quest Diagnostics agreement, and unveiled strong data from the pivotal clinical validation study for our next-generation Afirma Genomic Sequencing Classifier, which will be presented at the AACE annual meeting this week. We received final Medicare coverage and pricing for the Percepta Bronchial Genomic Classifier and are poised to begin ramping test volume and revenue."
For fiscal year 2017, Veracyte, Inc forecasts revenue to be in the range of $76 million to $84 million.
Working capital increases sharply
Veracyte, Inc has recorded an increase in the working capital over the last year. It stood at $56.88 million as at Mar. 31, 2017, up 28.36 percent or $12.57 million from $44.32 million on Mar. 31, 2016. Current ratio was at 7.04 as on Mar. 31, 2017, up from 4.73 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 8 days for the last year period. Days sales outstanding went up to 35 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 54 days for the previous year period. At the same time, days payable outstanding went down to 55 days for the quarter from 68 for the same period last year.
Debt moves up marginally
Veracyte, Inc has witnessed an increase in total debt over the last one year. It stood at $25.47 million as on Mar. 31, 2017, up 4.17 percent or $1.02 million from $24.45 million on Mar. 31, 2016. Veracyte, Inc has witnessed an increase in long-term debt over the last one year. It stood at $25.47 million as on Mar. 31, 2017, up 4.17 percent or $1.02 million from $24.45 million on Mar. 31, 2016. Total debt was 27.51 percent of total assets as on Mar. 31, 2017, compared with 29.02 percent on Mar. 31, 2016. Debt to equity ratio was at 0.48 as on Mar. 31, 2017, down from 0.56 as on Mar. 31, 2016.
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