Revenue during the quarter dropped 13.68 percent to $90.45 million from $104.78 million in the previous year period. Gross margin for the quarter expanded 282 basis points over the previous year period to 80.35 percent. Operating margin for the quarter stood at negative 7.37 percent as compared to a negative 4.12 percent for the previous year period.

Operating loss for the quarter was $6.66 million, compared with an operating loss of $4.31 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $25.30 million compared with $27.32 million in the prior year period. At the same time, adjusted EBITDA margin improved 189 basis points in the quarter to 27.97 percent from 26.08 percent in the last year period.

"I am excited to have joined Depomed and am confident in our future," said Arthur Higgins, president and chief executive officer of Depomed. "We are currently facing a number of challenges in our business and they are reflected in our first quarter performance which fell well short of expectations. During my first month on the job, I have worked across the Company to diagnose our recent performance. The key drivers of our first quarter shortfall include: significant declines in the opioid market and a highly disruptive salesforce realignment which was implemented in February."

For financial year 2017, Depomed, Inc. expects revenue to be in the range of $405 million to $425 million. The company expects adjusted revenue to be in the range of $410 million to $430 million.

Debt comes down
Depomed, Inc. has recorded a decline in total debt over the last one year. It stood at $723.43 million as on Mar. 31, 2017, down 10.08 percent or $81.13 million from $804.56 million on Mar. 31, 2016. Total debt was 61.32 percent of total assets as on Mar. 31, 2017, compared with 60.24 percent on Mar. 31, 2016. Debt to equity ratio was at 3.14 as on Mar. 31, 2017, up from 2.68 as on Mar. 31, 2016.