Entellus Medical, Inc. (ENTL) saw its loss widen to $9.52 million, or $0.50 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $6.07 million, or $0.32 a share.
Revenue during the quarter grew 20.78 percent to $17.88 million from $14.80 million in the previous year period. Gross margin for the quarter contracted 282 basis points over the previous year period to 74 percent. Operating margin for the quarter stood at negative 50.26 percent as compared to a negative 37.54 percent for the previous year period.
Operating loss for the quarter was $8.99 million, compared with an operating loss of $5.56 million in the previous year period.
"Entellus delivered another solid quarter as we continue to advance our presence in the office setting," said Robert White, president and chief executive officer of Entellus Medical. "We have continued to receive positive validation from our physician partners on our increased array of products that facilitate sinus surgery in the ENT physician office. This was highlighted by an overwhelmingly positive reception by ENT physicians at the AAO Annual Meeting in San Diego. Our progress in 2016 has been marked by consistent and ongoing investment in new products and market development efforts, which we believe further fuels our positive momentum as we enter the new year."
For financial year 2016, Entellus Medical, Inc. forecasts revenue to be in the range of $74 million to $75.50 million. The company projects net loss to be in the range of $26 million to $29.50 million.
Working capital drops significantly
Entellus Medical, Inc. has witnessed a decline in the working capital over the last year. It stood at $37.38 million as at Sep. 30, 2016, down 49.54 percent or $36.70 million from $74.08 million on Sep. 30, 2015. Current ratio was at 2.78 as on Sep. 30, 2016, down from 5.94 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 50 days for the quarter from 61 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 61 days for the same period last year.
Days inventory outstanding has decreased to 58 days for the quarter compared with 77 days for the previous year period. At the same time, days payable outstanding went down to 62 days for the quarter from 76 for the same period last year.
Debt remains almost stable
Entellus Medical, Inc. has recorded a decline in total debt over the last one year. It stood at $19.87 million as on Sep. 30, 2016, down 0.66 percent or $0.13 million from $20 million on Sep. 30, 2015. Total debt was 26.24 percent of total assets as on Sep. 30, 2016, compared with 21.52 percent on Sep. 30, 2015. Debt to equity ratio was at 0.49 as on Sep. 30, 2016, up from 0.32 as on Sep. 30, 2015.
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