Sagent Pharmaceuticals (SGNT), a manufacturer of specialty pharmaceutical products, has posted a 77.05 percent plunge in profit for the quarter ended Jun. 30, 2014, due to sharp increase in operating expenses.

The company earned $3.07 million or $0.09 a share in the second-quarter compared with $13.37 million or $0.46 a share a year ago. Analysts on average had predicted net loss of $0.01 a share.

Revenue during the second-quarter grew 16.11 percent to $69.19 million from $59.59 million in the last year period.

Gross margin contracted by 631 basis points over the previous year period to 32.65 percent. Total expenses as a percentage of revenues increased to 95.20 percent from 82.38 percent in the same period last year. That has resulted in contraction of 1775 basis points in operating margins to 4.80 percent.

The company disclosed operating income of $3.32 million, compared with $13.43 million in the last year period.

''Our strong revenue and margin performance in the first half of the year was driven by broad demand across our increasingly diverse product portfolio,'' said Jeffrey M. Yordon, chief executive officer and chairman of the board of Sagent.

The company expects the third quarter revenues to be in the range of $270 to $290 million. Adjusted gross profit as a percentage of net revenue is expected in the range of 26% to 30%, an increase from initial estimate of 24% to 28%, it said.

Cash Position

As on Jun. 30, 2014, the company's cash balance stood at $47.83 million, up 8.72 percent or $3.84 million from Jun. 30, 2013.

Working Capital

Sagent Pharmaceuticals has witnessed an increase in the working capital over the last one year. The company's working capital stood at $182.05 million as at Jun. 30, 2014, up $67.62 million or 59.10 percent from $114.43 million on Jun. 30, 2013. It registered an increase in current ratio to 4.55 as at Jun. 30, 2014 from 3.25 on Jun. 30, 2013.

Shares of the company declined $0.04 or 0.16 percent to settle at $25.73 on Tuesday.