Maxim Integrated Products Inc (MXIM) has reported a marginal increase of a 0.29 percent in profit for the quarter ended Mar. 25, 2017. The company has earned $140.21 million, or $0.49 a share, compared with $139.81 million or $0.48 a share, a year ago. Revenue during the quarter grew 4.68 percent to $581.22 million from $555.25 million in the previous year period. Gross margin for the quarter expanded 570 basis points over the previous year period to 63.13 percent. Total expenses were 70.02 percent of quarterly revenues, up from 68 percent for the same period last year. That has resulted in a contraction of 202 basis points in operating margin to 29.98 percent.
Operating income for the quarter was $174.25 million, compared with $177.71 million in the previous year period.
Tunc Doluca, president and chief executive officer, commented, “Our strong growth in the March quarter enable us to exceed our revenue and profitability targets. This momentum was led by Automotive and Industrial growth relative to the March quarter of last year." Mr. Doluca continued, "Our return to growth and strong profitability confirms that our R&D investment strategy and manufacturing transformation are on track and delivering great results."
Working capital increases
Maxim Integrated Products Inc has recorded an increase in the working capital over the last year. It stood at $2,421 million as at Mar. 25, 2017, up 14.20 percent or $301.12 million from $2,119.88 million on Mar. 26, 2016. Current ratio was at 9.23 as on Mar. 25, 2017, up from 7.20 on Mar. 26, 2016.
Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 110 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 51 days for the quarter compared with 98 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 30 for the same period last year.
Debt remains almost stable
Maxim Integrated Products Inc has recorded a decline in total debt over the last one year. It stood at $991.88 million as on Mar. 25, 2017, down 0.81 percent or $8.12 million from $1,000 million on Mar. 26, 2016. Maxim Integrated Products has recorded a decline in long-term debt over the last one year. It stood at $991.88 million as on Mar. 25, 2017, down 0.81 percent or $8.12 million from $1,000 million on Mar. 26, 2016. Total debt was 24.69 percent of total assets as on Mar. 25, 2017, compared with 25.12 percent on Mar. 26, 2016. Debt to equity ratio was almost stable at 0.46 as on Mar. 25, 2017, when compared with the last year.
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