athenahealth, Inc (ATHN) saw its loss widen to $1.40 million, or $0.03 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.80 million, or $0.02 a share. On the other hand, adjusted net income for the quarter stood at $12.50 million, or $0.32 a share compared with $13.40 million or $0.34 a share, a year ago. Revenue during the quarter grew 11.44 percent to $285.40 million from $256.10 million in the previous year period. Gross margin for the quarter expanded 110 basis points over the previous year period to 49.40 percent. Total expenses were 99.61 percent of quarterly revenues, down from 99.88 percent for the same period last year. This has led to an improvement of 27 basis points in operating margin to 0.39 percent.
Operating income for the quarter was $1.10 million, compared with $0.30 million in the previous year period.
However, the adjusted operating income for the quarter was stable at $22 million when compared with the prior year period. At the same time, adjusted operating margin contracted 88 basis points in the quarter to 7.71 percent from 8.59 percent in the last year period.
“athenahealth is truly differentiated in the healthcare industry as the only national, single-instance cloud-based medical record in the country. Today, our network has grown to over 99,000 providers, 88 million unique patient records, and 2.8 million covered lives,” said Jonathan Bush, chairman and chief executive officer, athenahealth. “We are strategically and financially aligned with the destinies of our clients, which separates us from traditional on-premise software vendors. Despite revising our 2017 financial outlook, we believe we are well-positioned for another renaissance as government mandates wane and we dedicate our efforts to our unique product management. We strongly believe our business model is on the right side of history as we build out the healthcare internet.”
For fiscal year 2017, athenahealth, Inc projects revenue to be in the range of $1,210 million to $1,250 million for financial year 2017 and its operating income to be in the range of $36 million to $46 million and its adjusted operating income to be in the range of $120 million to $140 million.
Operating cash flow improves
athenahealth, Inc has generated cash of $8.80 million from operating activities during the quarter, up 6.02 percent or $0.50 million, when compared with the last year period. The company has spent $41.90 million cash to meet investing activities during the quarter as against cash outgo of $39.50 million in the last year period.
The company has spent $16.50 million cash to carry out financing activities during the quarter as against cash outgo of $10.20 million in the last year period.
Cash and cash equivalents stood at $98 million as on Mar. 31, 2017, down 2.58 percent or $2.59 million from $100.59 million on Mar. 31, 2016.
Working capital increases
athenahealth, Inc has recorded an increase in the working capital over the last year. It stood at $138.50 million as at Mar. 31, 2017, up 13.71 percent or $16.69 million from $121.81 million on Mar. 31, 2016. Current ratio was at 1.84 as on Mar. 31, 2017, up from 1.76 on Mar. 31, 2016.
Days sales outstanding went down to 49 days for the quarter compared with 52 days for the same period last year.
At the same time, days payable outstanding went down to 5 days for the quarter from 6 for the same period last year.
Debt comes down marginally
athenahealth, Inc has recorded a decline in total debt over the last one year. It stood at $283.70 million as on Mar. 31, 2017, down 4.87 percent or $14.54 million from $298.24 million on Mar. 31, 2016. Total debt was 23.52 percent of total assets as on Mar. 31, 2017, compared with 27.48 percent on Mar. 31, 2016. Debt to equity ratio was at 0.41 as on Mar. 31, 2017, down from 0.55 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
