NanoString Technologies, Inc. (NSTG) saw its loss widen to $10.09 million, or $0.51 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $9.47 million, or $0.49 a share.
Revenue during the quarter surged 52.51 percent to $23.93 million from $15.69 million in the previous year period. Gross margin for the quarter expanded 634 basis points over the previous year period to 66.26 percent. Operating margin for the quarter stood at negative 35.37 percent as compared to a negative 53.81 percent for the previous year period.
Operating loss for the quarter was $8.47 million, compared with an operating loss of $8.44 million in the previous year period.
"We continued to execute well during the third quarter, generating strong growth across our business while advancing our product pipeline and partnerships," said president and chief executive officer Brad Gray. "A highlight of the quarter was the robust demand for our nCounter SPRINTTM Profiler, which helped drive 62% year-on-year growth in instrument revenue and validated that SPRINT's ability to reach new customers is accelerating instrument placement."
For financial year 2016, NanoString Technologies, Inc. forecasts revenue to be in the range of $89 million to $93 million. The company forecasts operating income to be in the range of $37 million to $40 million. It expects diluted earnings per share to be in the range of $2.15 to $2.30.
Working capital increases
NanoString Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $61.85 million as at Sep. 30, 2016, up 5.62 percent or $3.29 million from $58.56 million on Sep. 30, 2015. Current ratio was at 3.14 as on Sep. 30, 2016, down from 4.66 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 107 days for the quarter from 195 days for the last year period. Days sales outstanding went down to 66 days for the quarter compared with 77 days for the same period last year.
Days inventory outstanding has decreased to 67 days for the quarter compared with 154 days for the previous year period. At the same time, days payable outstanding went down to 26 days for the quarter from 36 for the same period last year.
Debt increases substantially
NanoString Technologies, Inc. has witnessed an increase in total debt over the last one year. It stood at $47.07 million as on Sep. 30, 2016, up 49.03 percent or $15.49 million from $31.58 million on Sep. 30, 2015. Total debt was 46.03 percent of total assets as on Sep. 30, 2016, compared with 38.05 percent on Sep. 30, 2015.
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