Sucampo Pharmaceuticals, Inc (SCMP) has reported 11.83 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $8.09 million, or $0.19 a share in the quarter, compared with $7.24 million, or $0.16 a share for the same period last year. Revenue during the quarter surged 73.02 percent to $57.87 million from $33.45 million in the previous year period. Gross margin for the quarter contracted 1113 basis points over the previous year period to 73.07 percent. Total expenses were 77.07 percent of quarterly revenues, up from 65.15 percent for the same period last year. That has resulted in a contraction of 1193 basis points in operating margin to 22.93 percent.
Operating income for the quarter was $13.27 million, compared with $11.66 million in the previous year period.
“We are very excited that we have achieved another significant quarter of strong financial results, driven by solid global performance of our flagship brand, AMITIZA. Additionally, we continued to make significant progress on many important areas of our business, including the resolution of our patent litigation with Dr. Reddy’s Laboratories that affords us greater certainty on the significant future value of the AMITIZA franchise, ” said Peter Greenleaf, Chairman and Chief Executive Officer of Sucampo. “Looking forward to the remainder of 2016 and throughout 2017, we will be focused on the execution of our base business, next steps in our phase three program for AMITIZA in pediatric functional constipation and development of a sprinkle formulation, and completion of strategic transactions to further boost growth and diversify our company.”
Sucampo Pharmaceuticals forecasts revenue to be in the range of $220 million to $225 million for fiscal year 2016. For financial year 2016, Sucampo Pharmaceuticals projects net income to be in the range of $50 million to $55 million. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $1.20 to $1.25.
Working capital increases sharply
Sucampo Pharmaceuticals, Inc has recorded an increase in the working capital over the last year. It stood at $170.67 million as at Sep. 30, 2016, up 33.37 percent or $42.70 million from $127.97 million on Sep. 30, 2015. Current ratio was at 3.55 as on Sep. 30, 2016, down from 4.82 on Sep. 30, 2015. Cash conversion cycle (CCC) has increased to 89 days for the quarter from 2 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 69 days for the same period last year.
Days inventory outstanding has increased to 71 days for the quarter compared with 5 days for the previous year period. At the same time, days payable outstanding went down to 35 days for the quarter from 77 for the same period last year.
Debt increases substantially
Sucampo Pharmaceuticals, Inc has witnessed an increase in total debt over the last one year. It stood at $218.71 million as on Sep. 30, 2016, up 906 percent or $196.97 million from $21.74 million on Sep. 30, 2015. Total debt was 47.59 percent of total assets as on Sep. 30, 2016, compared with 12.51 percent on Sep. 30, 2015. Debt to equity ratio was at 1.51 as on Sep. 30, 2016, up from 0.18 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 2.25 for the quarter from 47.97 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
