VIVUS, Inc. (VVUS) saw its loss narrow to $1.06 million, or $0.01 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $12.71 million, or $0.12 a share. Revenue during the quarter surged 76.27 percent to $27.01 million from $15.32 million in the previous year period. Gross margin for the quarter expanded 134 basis points over the previous year period to 77.17 percent. Operating margin for the quarter period stood at positive 26.78 percent as compared to a negative 29.57 percent for the previous year period.
Operating income for the quarter was $7.23 million, compared with an operating loss of $4.53 million in the previous year period.
"We continue our efforts to reshape VIVUS’ business model," said Seth H. Z. Fischer, VIVUS' Chief Executive Officer. "We have begun the formulation phase of our development program for tacrolimus as a treatment of Pulmonary Arterial Hypertension and expect to submit our request for a pre-IND meeting with FDA in the second half of 2017."
Working capital increases sharply
VIVUS, Inc. has recorded an increase in the working capital over the last year. It stood at $257.33 million as at Mar. 31, 2017, up 25.35 percent or $52.04 million from $205.29 million on Mar. 31, 2016. Current ratio was at 8.14 as on Mar. 31, 2017, up from 5.02 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 72 days for the quarter from 188 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 62 days for the same period last year.
Days inventory outstanding has decreased to 125 days for the quarter compared with 307 days for the previous year period. At the same time, days payable outstanding went down to 87 days for the quarter from 181 for the same period last year.
Debt moves up marginally
VIVUS, Inc. has witnessed an increase in total debt over the last one year. It stood at $244.18 million as on Mar. 31, 2017, up 4.47 percent or $10.45 million from $233.73 million on Mar. 31, 2016. Total debt was 82.64 percent of total assets as on Mar. 31, 2017, compared with 89.99 percent on Mar. 31, 2016.
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