Albany Molecular Research, Inc. (AMRI) saw its loss widen to $23.42 million, or $0.57 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.17 million, or $0.12 a share. On the other hand, adjusted net income for the quarter stood at $7.24 million, or $0.17 a share compared with $5.11 million or $0.14 a share, a year ago.
Revenue during the quarter surged 46.05 percent to $152.74 million from $104.58 million in the previous year period. Gross margin for the quarter contracted 416 basis points over the previous year period to 19.15 percent. Operating margin for the quarter stood at negative 10.25 percent as compared to a positive 0.01 percent for the previous year period.
Operating loss for the quarter was $15.66 million, compared with an operating income of $0.01 million in the previous year period.
However, the adjusted operating income for the quarter stood at $17.64 million compared to $10.70 million in the prior year period. At the same time, adjusted operating margin improved 132 basis points in the quarter to 11.55 percent from 10.23 percent in the last year period.
"We delivered another solid quarter, highlighted by strong organic growth in Discovery and Development Services, strong operational effectiveness in our Drug Product business, and with the closing of the Euticals acquisition, a significantly expanded API business," said William S. Marth, AMRI's president and chief executive officer. Strategically, our acquisitions have helped us establish a vast and responsive global development and manufacturing network, an extensive portfolio of unique APIs that have high barriers to entry, and expanded technical capabilities in areas such as sterile API, fermentation and monobactams that complement our organic business. We are confident in our outlook for the remainder of 2016 and believe our strategy to acquire and organically grow in technologically challenging businesses is strengthening and positioning AMRI to be a premier provider of services to the pharmaceutical industry and positions us well for long-term growth."
For fiscal year 2016, Albany Molecular Research, Inc. forecasts revenue to be in the range of $590 million to $615 million. The company expects diluted loss per share to be in the range of $1.49 to $1.39 and expects diluted earnings per share to be in the range of $1.03 to $1.11 on adjusted basis.
Working capital increases
Albany Molecular Research, Inc. has recorded an increase in the working capital over the last year. It stood at $221.70 million as at Sep. 30, 2016, up 8.60 percent or $17.56 million from $204.14 million on Sep. 30, 2015. Current ratio was at 2.21 as on Sep. 30, 2016, down from 3.06 on Sep. 30, 2015.
Days sales outstanding went down to 65 days for the quarter compared with 79 days for the same period last year.
Days inventory outstanding has decreased to 75 days for the quarter compared with 95 days for the previous year period.
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