STRATA Skin Sciences (MELA) saw its loss narrow to $1.51 million, or $0.14 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $9.23 million, or $1.29 a share.
Revenue during the quarter dropped 6.68 percent to $7.77 million from $8.32 million in the previous year period. Gross margin for the quarter contracted 298 basis points over the previous year period to 60.47 percent. Operating margin for the quarter stood at negative 5.21 percent as compared to a negative 27.91 percent for the previous year period.
Operating loss for the quarter was $0.40 million, compared with an operating loss of $2.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.24 million compared with $0.39 million in the prior year period. At the same time, adjusted EBITDA margin improved 1123 basis points in the quarter to 15.90 percent from 4.67 percent in the last year period.
"The STRATA business has been in its current form for about a year. We now have a good sense of what has been working well with the XTRAC business, where the challenges lie, and what actions we need to take to address them," stated Frank McCaney, president and chief executive officer. "I believe that gives us the opportunity to focus on growing the core business through technology enhancements, improved treatment protocols for patients and new marketing initiatives. Importantly, we believe that dermatology office practices are undergoing significant changes, and we plan to take an approach that helps dermatologists and their practices be more efficient, more successful and to better manage the business aspects of their offices."
Operating cash flow remains negativeSTRATA Skin Sciences has spent $1.08 million cash to meet operating activities during the nine month period as against cash outgo of $6.94 million in the last year period. The company has spent $0.47 million cash to meet investing activities during the nine month period as against cash outgo of $43.68 million in the last year period.
Cash flow from financing activities was $1.20 million for the nine month period, down 97.16 percent or $41.14 million, when compared with the last year period.
Cash and cash equivalents stood at $2.96 million as on Sep. 30, 2016, down 6.69 percent or $0.21 million from $3.17 million on Sep. 30, 2015.
Debt moves upSTRATA Skin Sciences has witnessed an increase in total debt over the last one year. It stood at $22.80 million as on Sep. 30, 2016, up 12.56 percent or $2.54 million from $20.26 million on Sep. 30, 2015. Total debt was 53.09 percent of total assets as on Sep. 30, 2016, compared with 38.85 percent on Sep. 30, 2015. Debt to equity ratio was at 1.44 as on Sep. 30, 2016, up from 1.28 as on Sep. 30, 2015. 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
