Medidata Solutions (MDSO) has reported 57.19 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $7.36 million, or $0.13 a share in the quarter, compared with $4.68 million, or $0.08 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.97 million, or $0.28 a share compared with $14 million or $0.25 a share, a year ago.
Revenue during the quarter grew 16.44 percent to $120.06 million from $103.11 million in the previous year period. Gross margin for the quarter contracted 224 basis points over the previous year period to 75.66 percent. Total expenses were 87.57 percent of quarterly revenues, down from 89.23 percent for the same period last year. This has led to an improvement of 166 basis points in operating margin to 12.43 percent.
Operating income for the quarter was $14.93 million, compared with $11.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $29.30 million compared to $25.96 million in the prior year period. At the same time, adjusted operating margin contracted 77 basis points in the quarter to 24.41 percent from 25.17 percent in the last year period.
"We had a great third quarter, as execution drove our strong financial performance, improved platform adoption and broad-based momentum across our products, regions and channels," said Tarek Sherif, Medidata’s chairman and chief executive officer. “Our results show that our investments in innovation and commitment to customer and partner success are paying off. With the life sciences industry increasingly turning to Medidata to help support its transformation, we are positioned to be the architecture supporting drug development today and in the future. For the remainder of the year, we’re focused on executing on our 2016 plan and building the foundation for a strong 2017.”
For fiscal year 2016, Medidata Solutions projects revenue to be in the range of $450 million to $474 million. It expects net income to be in the range of $16.50 million to $21 million. It forecasts adjusted net income to be in the range of $54.50 million to $59 million, the company projects operating income to be in the range of $38.50 million to $45.50 million. The company projects adjusted operating income to be in the range of $102 million to $109 million.
Operating cash flow declinesMedidata Solutions has generated cash of $48.37 million from operating activities during the nine month period, down 16.83 percent or $9.79 million, when compared with the last year period. Cash flow from investing activities was almost stable for the quarter at $27.98 million, when compared with the previous year period.
The company has spent $5.08 million cash to carry out financing activities during the nine month period as against cash outgo of $6.53 million in the last year period.
Cash and cash equivalents stood at $65.16 million as on Sep. 30, 2016, up 3.14 percent or $1.99 million from $63.18 million on Sep. 30, 2015.
Working capital increases
Medidata Solutions has recorded an increase in the working capital over the last year. It stood at $346.62 million as at Sep. 30, 2016, up 19.95 percent or $57.66 million from $288.96 million on Sep. 30, 2015. Current ratio was at 3.81 as on Sep. 30, 2016, up from 3.77 on Sep. 30, 2015.
Days sales outstanding were almost stable at 80 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 6 days for the quarter from 10 for the same period last year.
Debt moves up marginallyMedidata Solutions has witnessed an increase in total debt over the last one year. It stood at $259.85 million as on Sep. 30, 2016, up 4.05 percent or $10.11 million from $249.74 million on Sep. 30, 2015. Medidata Solutions has witnessed an increase in long-term debt over the last one year. It stood at $259.85 million as on Sep. 30, 2016, up 4.05 percent or $10.11 million from $249.74 million on Sep. 30, 2015. Total debt was 33.07 percent of total assets as on Sep. 30, 2016, compared with 36.52 percent on Sep. 30, 2015. Debt to equity ratio was at 0.69 as on Sep. 30, 2016, down from 0.83 as on Sep. 30, 2015. Interest coverage ratio improved to 3.54 for the quarter from 2.75 for the same period last year. 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
