Surmodics, Inc (SRDX) has reported a 94.70 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $2.64 million, or $0.20 a share in the quarter, compared with $1.36 million, or $0.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.48 million, or $0.26 a share compared with $4.58 million or $0.34 a share, a year ago. Revenue during the quarter grew 4.55 percent to $18.15 million from $17.36 million in the previous year period. Gross margin for the quarter contracted 73 basis points over the previous year period to 84.36 percent. Total expenses were 77.51 percent of quarterly revenues, up from 75.43 percent for the same period last year. That has resulted in a contraction of 208 basis points in operating margin to 22.49 percent.
Operating income for the quarter was $4.08 million, compared with $4.27 million in the previous year period.
However, the adjusted operating income for the quarter stood at $5 million compared to $6.93 million in the prior year period. At the same time, adjusted operating margin contracted 1237 basis points in the quarter to 27.55 percent from 39.92 percent in the last year period.
"The fourth quarter marked the continuation of the outstanding execution by the Surmodics team in fiscal 2016. I am proud of our accomplishments as we surpassed our fiscal 2016 financial goals and successfully integrated the Creagh Medical and NorMedix teams with Surmodics. We have also made significant progress on all key strategic growth priorities,"said Gary Maharaj, president and chief executive officer. “Most notably, we have frozen the design of our first 510(k) product and completed an interim look at the data from the investigational device exemption (IDE) study of our SurVeil® drug-coated balloon platform."
For financial year 2017, Surmodics, Inc expects revenue to be in the range of $63 million to $67 million. The company projects diluted loss per share to be in the range of negative $0.15 to $0.05. It company projects diluted earnings per share to be in the range of $0.15 to $0.35 on adjusted basis.
Working capital declines
Surmodics, Inc has witnessed a decline in the working capital over the last year. It stood at $48.42 million as at Sep. 30, 2016, down 23.25 percent or $14.67 million from $63.09 million on Sep. 30, 2015. Current ratio was at 5.78 as on Sep. 30, 2016, down from 14.42 on Sep. 30, 2015. Days sales outstanding went down to 17 days for the quarter compared with 20 days for the same period last year.
Days inventory outstanding has increased to 58 days for the quarter compared with 53 days for the previous year period.
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