Peregrine Pharmaceuticals, Inc. (PPHM) saw its loss narrow to $7.77 million, or $0.04 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $16.85 million, or $0.08 a share.
Revenue during the quarter surged 60.19 percent to $10.75 million from $6.71 million in the previous year period. Gross margin for the quarter contracted 1613 basis points over the previous year period to 25.80 percent.
Operating loss for the quarter was $7.80 million, compared with an operating loss of $16.87 million in the previous year period.
"During the third quarter, Avid’s revenue growth continued, which is a strong indicator of the increasing value of this contract development and manufacturing organization (CDMO) business. The steady growth of this business over the past 5 years has been remarkable and we are pleased to see the trend continuing as we move through a number of process validations for clients, which we expect to spur further growth in the future as some or all of those products move to commercialization. We see Avid as a tremendously important asset with solid upside potential that is often overlooked as a value driver for the overall organization. With projected revenue of over $60 million for the current fiscal year, this is already a strong business in an industry that is expecting substantial growth over the next decade and we are excited about the future of the company," stated Steven W. King, president and chief executive officer of Peregrine, and president of Avid Bioservices. "An important component of our Avid growth strategy is capacity expansion within our Myford facility. We are currently on track to install two 2,000-liter bioreactors in the facility within the next few months with a book of business for the reactors already in place. We believe the total capacity potential of the facility, when operating in campaign mode, can exceed more than $75 million annually bringing us to well over $100 million in total potential revenue between our two manufacturing facilities, and giving us adequate capacity to continue Avid revenue growth through FY 2018."
Working capital drops significantly
Peregrine Pharmaceuticals, Inc. has witnessed a decline in the working capital over the last year. It stood at $13.01 million as at Jan. 31, 2017, down 63.24 percent or $22.38 million from $35.39 million on Jan. 31, 2016. Current ratio was at 1.19 as on Jan. 31, 2017, down from 1.61 on Jan. 31, 2016.
Cash conversion cycle (CCC) has decreased to 149 days for the quarter from 232 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 79 days for the same period last year.
Days inventory outstanding has decreased to 195 days for the quarter compared with 328 days for the previous year period. At the same time, days payable outstanding went down to 84 days for the quarter from 174 for the same period last year.
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