Vericel Corporation (ASTM) saw its loss widen to $6.68 million, or $0.38 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.42 million, or $0.26 a share. On the other hand, adjusted net loss for the quarter widened to $6.47 million, or $0.27 a share from a loss of $4.88 million or $0.21 a share, a year ago.
Revenue during the quarter dropped 3.36 percent to $10.93 million from $11.31 million in the previous year period. Gross margin for the quarter contracted 285 basis points over the previous year period to 37.27 percent. Operating margin for the quarter stood at negative 58.38 percent as compared to a negative 43.12 percent for the previous year period.
Operating loss for the quarter was $6.38 million, compared with an operating loss of $4.88 million in the previous year period.
“This is an exciting time for Vericel as we head into our historically strongest quarter of the year, prepare for the potential launch of MACI and expand our promotional efforts for Epicel,” said Nick Colangelo, president and chief executive officer of Vericel. "We believe that the investments we are making to expand our commercial organization and implement new programs to support our patients and other key stakeholders will drive a period of significant growth for the company in 2017 and beyond. ”
Working capital drops significantly
Vericel Corporation has witnessed a decline in the working capital over the last year. It stood at $5.74 million as at Sep. 30, 2016, down 70.19 percent or $13.52 million from $19.26 million on Sep. 30, 2015. Current ratio was at 1.37 as on Sep. 30, 2016, down from 3.08 on Sep. 30, 2015.
Cash conversion cycle (CCC) was almost stable at 58 days for the quarter, when compared with the last year period. Days sales outstanding went up to 71 days for the quarter compared with 68 days for the same period last year.
Days inventory outstanding has decreased to 24 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding went up to 37 days for the quarter from 34 for the same period last year.
Debt increases substantially
Vericel Corporation has witnessed an increase in total debt over the last one year. It stood at $5.61 million as on Sep. 30, 2016, up 6,823.46 percent or $5.53 million from $0.08 million on Sep. 30, 2015. Short-term debt stood at $5.57 million as on Sep. 30, 2016. Total debt was 20.01 percent of total assets as on Sep. 30, 2016, compared with 0.23 percent on Sep. 30, 2015.
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