Veracyte, Inc. (VCYT) saw its loss narrow to $5.64 million, or $0.20 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $8.94 million, or $0.32 a share.
Revenue during the quarter surged 50.81 percent to $18.60 million from $12.34 million in the previous year period. Gross margin for the quarter expanded 1132 basis points over the previous year period to 65.77 percent. Operating margin for the quarter stood at negative 26.26 percent as compared to a negative 72.06 percent for the previous year period.
Operating loss for the quarter was $4.89 million, compared with an operating loss of $8.89 million in the previous year period.
"We had tremendous success across our business since our second quarter call," said Bonnie Anderson, Veracyte's president and chief executive officer. "We delivered robust revenue growth in the third quarter, while experiencing Afirma GEC volume growth that aligns with the seasonal cadence of our business. We achieved a major Medicare coverage milestone for Percepta and we launched the Envisia Genomic Classifier, our third commercial product, while demonstrating a narrowing in cash burn for the quarter. We have a strong financial foundation for growth as we now target three clinical indications, which collectively comprise a more than $2 billion annual opportunity."
For fiscal year 2016, Veracyte, Inc. forecasts revenue to be in the range of $62 million to $65 million.
Working capital declines
Veracyte, Inc. has witnessed a decline in the working capital over the last year. It stood at $32.68 million as at Sep. 30, 2016, down 22 percent or $9.22 million from $41.90 million on Sep. 30, 2015. Current ratio was at 4.18 as on Sep. 30, 2016, up from 3.72 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 15 days for the last year period. Days sales outstanding went down to 24 days for the quarter compared with 26 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 65 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the quarter from 76 for the same period last year.
Debt increases substantially
Veracyte, Inc. has witnessed an increase in total debt over the last one year. It stood at $24.89 million as on Sep. 30, 2016, up 397.62 percent or $19.89 million from $5 million on Sep. 30, 2015. Veracyte, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $24.89 million as on Sep. 30, 2016, up 397.62 percent or $19.89 million from $5 million on Sep. 30, 2015. Total debt was 35.74 percent of total assets as on Sep. 30, 2016, compared with 6.19 percent on Sep. 30, 2015. Debt to equity ratio was at 0.83 as on Sep. 30, 2016, up from 0.09 as on Sep. 30, 2015.
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