Revenue during the quarter went down marginally by 0.60 percent to $810.90 million from $815.80 million in the previous year period. Gross margin for the quarter contracted 49 basis points over the previous year period to 51.62 percent. Total expenses were 88.88 percent of quarterly revenues, up from 83.77 percent for the same period last year. That has resulted in a contraction of 511 basis points in operating margin to 11.12 percent.

Operating income for the quarter was $90.20 million, compared with $132.40 million in the previous year period.

"Mallinckrodt's first quarter results were solid, driven by good, balanced performance across our Specialty Brands segment, in line with expectations, as we continue to successfully execute on creating value for patients with high unmet medical needs," said Mark Trudeau, President and Chief Executive Officer. "Somewhat stronger than expected Specialty Generics segment performance provided benefit as well, though future quarters will likely see results for that business more aligned with our guidance. We also continued to strategically allocate capital - purchasing shares and repaying debt - while divesting non-core assets. Looking ahead, we are equally focused on adding both commercial and late-stage assets through business development to enhance and further diversify our portfolio. Notably, we continue to see strengthening in Acthar formulary positions and access for appropriate patients in both the commercial and public environments, including relaxation or removal of previous formulary restrictions and, in at least one case, addition of Acthar to a formulary for the first time."

Cash flow from investing activities was $513.50 million for the quarter as against cash outgo of $202.80 million in the last year period.

The company has spent $498.30 million cash to carry out financing activities during the quarter as against cash outgo of $229 million in the last year period.

Cash and cash equivalents stood at $259.80 million as on Mar. 31, 2017.

Working capital drops significantly
Mallinckrodt Plc has witnessed a decline in the working capital over the last year. It stood at $411.10 million as at Mar. 31, 2017, down 37.03 percent or $241.70 million from $652.80 million on Mar. 25, 2016. Current ratio was at 1.40 as on Mar. 31, 2017, down from 1.73 on Mar. 25, 2016.

Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 58 days for the last year period. Days sales outstanding were almost stable at 27 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 42 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding was almost stable at 13 days for the quarter, when compared with the previous year period.