Genomic Health, Inc. (GHDX) saw its loss narrow to $0.81 million, or $0.02 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $6.35 million, or $0.19 a share. Revenue during the quarter grew 3.81 percent to $83.98 million from $80.89 million in the previous year period. Gross margin for the quarter expanded 369 basis points over the previous year period to 83.72 percent. Operating margin for the quarter stood at negative 3.36 percent as compared to a negative 10.89 percent for the previous year period.
Operating loss for the quarter was $2.82 million, compared with an operating loss of $8.81 million in the previous year period.
"Strong demand for our Oncotype tests in the first quarter of 2017 was due, in part, to growth across our U.S. prostate and global invasive breast business, including four percent sequential growth in U.S. invasive breast cancer. Importantly, for the seventh consecutive quarter, we delivered operating leverage and improved operating income by $6 million in the first quarter," said Kim Popovits, chairman of the board, chief executive officer and president of Genomic Health. "Additionally, last week Palmetto GBA issued a draft local coverage determination that recommends Medicare coverage expansion for the Oncotype DX Genomic Prostate Score to include intermediate-risk patients. Reimbursement progress remains a critical growth driver as we aim to deliver double-digit revenue growth in the second half of the year with continued profitability improvement."
Working capital increasesGenomic Health, Inc. has recorded an increase in the working capital over the last year. It stood at $105.33 million as at Mar. 31, 2017, up 6.26 percent or $6.21 million from $99.12 million on Mar. 31, 2016. Current ratio was at 3.86 as on Mar. 31, 2017, up from 3.65 on Mar. 31, 2016. Days sales outstanding went down to 38 days for the quarter compared with 43 days for the same period last year.
At the same time, days payable outstanding went up to 45 days for the quarter from 37 for the same period last year.
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