Orthofix International N V (OFIX) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $2.65 million, or $ 0.15 a share in the quarter, against a net profit of $3.84 million, or $0.20 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $4.86 million, or $0.27 a share compared with $5.24 million or $0.28 a share, a year ago. 

Revenue during the quarter grew 4.11 percent to $102.74 million from $98.68 million in the previous year period. Gross margin for the quarter expanded 45 basis points over the previous year period to 78.02 percent. Total expenses were 94.24 percent of quarterly revenues, up from 92.83 percent for the same period last year. That has resulted in a contraction of 141 basis points in operating margin to 5.76 percent.

Operating income for the quarter was $5.92 million, compared with $7.08 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $15.68 million compared with $15.47 million in the prior year period. At the same time, adjusted EBITDA margin contracted 42 basis points in the quarter to 15.26 percent from 15.68 percent in the last year period.  

"We are very pleased with the top-line results for the first quarter 2017 and the momentum we achieved in each of our businesses," said Brad Mason, president and chief executive officer. "The solid execution of our commercial strategies is delivering results as demonstrated by another strong quarter in our BioStim business and an earlier than expected return to growth in both Biologics and Spine Fixation. Although each strategic business unit has its own commercial strategy, our overriding corporate focus is on expanding distribution in underserved markets, improving engagement of our legacy distributors and providing our salesforce with a robust stream of new products. Our bottom-line results reflect the investments we are making in these key strategies, which are proving effective in driving our top line growth."

For fiscal year 2017, Orthofix International N V projects revenue to be in the range of $411 million to $415 million.  Orthofix International N V expects net income to be in the range of $20.60 million to $23.70 million. The company forecasts diluted earnings per share to be in the range of $1.12 to $1.29, the company forecasts diluted earnings per share to be in the range of $1.48 to $1.58 on adjusted basis.

Cash conversion cycle (CCC) has decreased to 119 days for the quarter from 233 days for the last year period. Days sales outstanding were almost stable at 52 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 132 days for the quarter compared with 241 days for the previous year period. At the same time, days payable outstanding went up to 66 days for the quarter from 61 for the same period last year.