Cogentix Medical, Inc (CGNT) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $106.31 million in the quarter, against a net loss of $2,368.64 million in the last year period. Revenue during the quarter grew 13.30 percent to $13,407.61 million from $11,834.19 million in the previous year period. Gross margin for the quarter expanded 82 basis points over the previous year period to 67.41 percent. Operating margin for the quarter period stood at positive 3.88 percent as compared to a negative 16.96 percent for the previous year period.
Operating income for the quarter was $520.83 million, compared with an operating loss of $2,007.53 million in the previous year period.
“Our third quarter results demonstrate continued operating momentum, and with the closing of our financing, we have fundamentally changed the capital structure of Cogentix Medical,” said Darin Hammers, President and Chief executive officer. “In the third quarter, our U.S. sales organization achieved broad-based 87 percent revenue growth for our PrimeSight Urology endoscopy solutions and also generated 14% unit growth of Urgent PC, which resulted in 6% Urgent PC revenue growth in the U.S. reflective of increased pricing competition. The overall strong revenue growth combined with expense management in the quarter yielded a cash operating profit in the third quarter of $1.4 million. Further, with our shareholders’ approval of our proposed debt conversion and $25 million equity raise, Cogentix Medical is transformed into a company with no debt and approximately $28 million of cash. We intend to use these resources and balance sheet flexibility to execute growth strategies that we expect will expand the value we bring to our urology physician customers as well as build the Company’s valuation.”
Operating cash flow turns positive
Cogentix Medical, Inc has generated cash of $2,874.75 million from operating activities during the nine month period as against cash outgo of $6,308.93 million in the last year period. The company has spent $232.33 million cash to meet investing activities during the nine month period as against cash inflow of $589.30 million in the last year period
Cash flow from financing activities was almost stable for the quarter at $375.84 million, when compared with the previous year period.
Cash and cash equivalents stood at $4,238.22 million as on Sep. 30, 2016, up 44.71 percent or $1,309.53 million from $2,928.70 million on Sep. 30, 2015.
Working capital increases sharply
Cogentix Medical, Inc has recorded an increase in the working capital over the last year. It stood at $9,089.10 million as at Sep. 30, 2016, up 111,529.14 percent or $9,080.95 million from $8.14 million on Sep. 30, 2015. Current ratio was at 1.90 as on Sep. 30, 2016, down from 2.03 on Sep. 30, 2015.
Debt increases substantially
Cogentix Medical, Inc has witnessed an increase in total debt over the last one year. It stood at $24,173.14 million as on Sep. 30, 2016, up 104,706.38 percent or $24,150.08 million from $23.06 million on Sep. 30, 2015. Vision Sciences has witnessed an increase in long-term debt over the last one year. It stood at $24,173.14 million as on Sep. 30, 2016, up 104,706.38 percent or $24,150.08 million from $23.06 million on Sep. 30, 2015. Total debt was 47.90 percent of total assets as on Sep. 30, 2016, compared with 45.97 percent on Sep. 30, 2015. Debt to equity ratio was at 1.75 as on Sep. 30, 2016, up from 1.32 as on Sep. 30, 2015. 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: editor@irisindia.net
