XOMA Corporation (XOMA) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $17.48 million, or $ 2.89 a share in the quarter, against a net profit of $25.35 million, or $4.24 a share in the last year period.
Revenue during the quarter plunged 98.91 percent to $0.52 million from $48.18 million in the previous year period.
Operating loss for the quarter was $17.46 million, compared with an operating income of $28.74 million in the previous year period.
"Our key accomplishments in 2016 included monetizing certain license assets, reducing our operating costs, reducing our debt and appointing new leadership to reflect our changed strategy," stated Jim Neal, recently appointed chief executive officer of XOMA. "In early 2017, we established proof-of-concept for X358 in congenital hyperinsulinism (CHI) and hypoglycemia post-bariatric surgery (PBS). In addition, with the investment of $25 million from BVF Partners, we launched a new strategy that leverages our extensive portfolio of partnered programs and licensed technologies that has the potential to generate substantial future milestone and royalty proceeds for the Company. Our objective is to drive shareholder value by combining the revenue from this portfolio of collaborator-funded programs with a lean cost structure. The positive momentum that began late in 2016 is growing in 2017, and we are excited about the future of the Company."
Working capital turns negative
Working capital of XOMA Corporation has turned negative to $5.35 million on Dec. 31, 2016 from positive $48.92 million on Dec. 31, 2015. Current ratio was at 0.84 as on Dec. 31, 2016, down from 3.10 on Dec. 31, 2015.
Debt comes down
XOMA Corporation has recorded a decline in total debt over the last one year. It stood at $43.17 million as on Dec. 31, 2016, down 11.30 percent or $5.50 million from $48.67 million on Dec. 31, 2015. Total debt was 150.53 percent of total assets as on Dec. 31, 2016, compared with 64.99 percent on Dec. 31, 2015.
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