Revenue during the quarter grew 3.08 percent to $227.91 million from $221.10 million in the previous year period. Gross margin for the quarter stood at negative 72.58 percent as compared to a positive 42.31 percent for the previous year period.

Operating loss for the quarter was $272.63 million, compared with an operating income of $27.56 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $58.88 million compared with $65.78 million in the prior year period. At the same time, adjusted EBITDA margin contracted 392 basis points in the quarter to 25.84 percent from 29.75 percent in the last year period.

“Our third quarter 2016 results reflect the volatility we have experienced as a result of additional competition on a few of our largest generic products,” said Fred Wilkinson, president and chief executive officer of Impax. “Successful marketing and operational strategies are helping us to capitalize on several generic opportunities, including epinephrine auto-injector and oxymorphone, and we defended our share position across the majority of our generic portfolio. That said, the ongoing impact of an increasingly challenging market environment continues to weigh on our results and consequently we are revising our outlook for fiscal 2016 to reflect the impact of lower pricing across an increased number of products in our generic portfolio.”

Impax Laboratories, Inc projects revenue to be in the range of $840 million to $855 million for financial year 2016. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $1.10 to $1.20 on adjusted basis.

The company has spent $604.81 million cash to meet investing activities during the nine month period as against cash outgo of $452 million in the last year period.

Cash flow from financing activities was $397.78 million for the nine month period, down 23.58 percent or $122.74 million, when compared with the last year period.

Cash and cash equivalents stood at $232.12 million as on Sep. 30, 2016, down 27.10 percent or $86.28 million from $318.40 million on Sep. 30, 2015.

Working capital drops significantly
Impax Laboratories, Inc has witnessed a decline in the working capital over the last year. It stood at $366.05 million as at Sep. 30, 2016, down 34.90 percent or $196.25 million from $562.31 million on Sep. 30, 2015. Current ratio was at 2.09 as on Sep. 30, 2016, down from 3.39 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 79 days for the quarter from 165 days for the last year period. Days sales outstanding were almost stable at 97 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 20 days for the quarter compared with 91 days for the previous year period. At the same time, days payable outstanding went up to 38 days for the quarter from 24 for the same period last year.