The Female Health Company (FHCO) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.75 million, or $ 0.06 a share in the quarter, against a net profit of $0.70 million, or $0.02 a share in the last year period. Revenue during the quarter plunged 50.20 percent to $3.56 million from $7.15 million in the previous year period. Gross margin for the quarter contracted 519 basis points over the previous year period to 52.44 percent. Operating margin for the quarter stood at negative 8.22 percent as compared to a positive 10.64 percent for the previous year period.
Operating loss for the quarter was $0.29 million, compared with an operating income of $0.76 million in the previous year period.
“Our entire team is focused on generating immediate revenue by expanding the FC2 Female Condom business in the global public health sector and as a disposable contraceptive device in the US prescription market, as well as launching the PREBOOST product,” said Mitchell Steiner, MD, recently named president and chief executive officer of The Female Health Company / Veru Healthcare. “Over the last several weeks, we made excellent progress on advancing our deep pharmaceuticals product candidate pipeline for near-term revenue that includes a number of substantial opportunities including the Tamsulosin DRS for benign prostatic hyperplasia. The bioequivalence study and filing of the NDA are expected for 2017. We believe these actions will help lay the foundation for improved operating results.”
Operating cash flow remains negative
The Female Health Company has spent $1.71 million cash to meet operating activities during the year as against cash outgo of $1.55 million in the last year. The company has spent $0.01 million cash to meet investing activities during the year as against cash outgo of $0.14 million in the last year.
Cash and cash equivalents stood at $2.39 million as on Sep. 30, 2016, down 41.91 percent or $1.72 million from $4.11 million on Sep. 30, 2015.
Working capital declines
The Female Health Company has witnessed a decline in the working capital over the last year. It stood at $14.97 million as at Sep. 30, 2016, down 13.78 percent or $2.39 million from $17.36 million on Sep. 30, 2015. Current ratio was at 5.47 as on Sep. 30, 2016, up from 5.11 on Sep. 30, 2015.
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