Zogenix, Inc. (ZGNX) saw its loss widen to $17 million, or $0.69 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $14.62 million, or $0.65 a share.
Revenue during the quarter dropped 27.96 percent to $6.57 million from $9.12 million in the previous year period. Gross margin for the quarter contracted 1197 basis points over the previous year period to 2.72 percent.
Operating loss for the quarter was $16.71 million, compared with an operating loss of $12.08 million in the previous year period.
"During the third quarter, we continued to accelerate the clinical development of our lead product, ZX008 for Dravet syndrome," said Stephen J. Farr, Ph.D., president and chief executive officer. "We are continuing to enroll patients in both Phase 3 trials and intend to report top-line data in the second quarter of 2017. We look forward to having a significant presence, including the presentation of multiple posters and hosting a Scientific Exhibit Room, at the upcoming American Epilepsy Society Meeting in December."
Working capital drops significantly
Zogenix, Inc. has witnessed a decline in the working capital over the last year. It stood at $121.15 million as at Sep. 30, 2016, down 26.84 percent or $44.45 million from $165.60 million on Sep. 30, 2015. Current ratio was at 9.58 as on Sep. 30, 2016, up from 5.73 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 102 days for the quarter from 123 days for the last year period. Days sales outstanding went up to 87 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 68 days for the quarter compared with 136 days for the previous year period. At the same time, days payable outstanding went down to 53 days for the quarter from 63 for the same period last year.
Debt comes down marginally
Zogenix, Inc. has recorded a decline in total debt over the last one year. It stood at $21.84 million as on Sep. 30, 2016, down 1.65 percent or $0.37 million from $22.21 million on Sep. 30, 2015. Total debt was 8.54 percent of total assets as on Sep. 30, 2016, compared with 6.91 percent on Sep. 30, 2015. Debt to equity ratio was at 0.15 as on Sep. 30, 2016, up from 0.12 as on Sep. 30, 2015.
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