Rockwell Medical, Inc (RMTI) saw its loss widen to $4.56 million, or $0.09 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.41 million, or $0.05 a share. Revenue during the quarter dropped 10.88 percent to $12.81 million from $14.38 million in the previous year period. Gross margin for the quarter contracted 508 basis points over the previous year period to 12.33 percent. Operating margin for the quarter stood at negative 37.08 percent as compared to a negative 17.88 percent for the previous year period.
Operating loss for the quarter was $4.75 million, compared with an operating loss of $2.57 million in the previous year period.
Mr. Robert L. Chioini, chairman and chief executive officer of Rockwell stated, "We continue to make solid progress in our efforts to obtain transitional add-on reimbursement for Triferic. We believe we are moving closer to our goal of securing it. Multiple stakeholders have aided us and support add-on reimbursement for Triferic. Concurrently, we have been educating our customers and patients about Triferic and its unique benefits. We also have advanced Triferic clinical development work for the renal application outside the U.S. as well as additional therapeutic indications. Overall, we are pleased with our progress, which includes ensuring we have redundancy in our manufacturing and supply capability."
Operating cash flow remains negative
Rockwell Medical, Inc has spent $12.99 million cash to meet operating activities during the nine month period as against cash outgo of $13.54 million in the last year period. Cash flow from investing activities was $1.01 million for the nine month period as against cash outgo of $20.66 million in the last year period.
Cash flow from financing activities was $0.08 million for the nine month period, down 94.91 percent or $1.50 million, when compared with the last year period.
Cash and cash equivalents stood at $19.29 million as on Sep. 30, 2016, down 41.84 percent or $13.88 million from $33.17 million on Sep. 30, 2015.
Working capital declines
Rockwell Medical, Inc has witnessed a decline in the working capital over the last year. It stood at $72.47 million as at Sep. 30, 2016, down 8.76 percent or $6.96 million from $79.43 million on Sep. 30, 2015. Current ratio was at 10.91 as on Sep. 30, 2016, up from 10.37 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 60 days for the quarter from 48 days for the last year period. Days sales outstanding went up to 43 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has decreased to 48 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 37 for the same period last year.
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