Acacia Communications, Inc. (ACIA) has reported an 144.62 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $35.71 million, or $0.86 a share in the quarter, compared with $14.60 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $32.04 million, or $0.77 a share compared with $14.57 million or $0.44 a share, a year ago.
Revenue during the quarter surged 35.72 percent to $114.67 million from $84.49 million in the previous year period. Gross margin for the quarter expanded 719 basis points over the previous year period to 49.10 percent. Total expenses were 73.94 percent of quarterly revenues, down from 81.14 percent for the same period last year. This has led to an improvement of 719 basis points in operating margin to 26.06 percent.
Operating income for the quarter was $29.88 million, compared with $15.94 million in the previous year period.
However, the adjusted operating income for the quarter stood at $34.51 million compared to $16.23 million in the prior year period. At the same time, adjusted operating margin improved 1089 basis points in the quarter to 30.10 percent from 19.21 percent in the last year period.
"We are pleased that our first quarter results came in stronger than we expected at the start of the quarter driven by demand for our CFP and flex-400G products around the world," said Raj Shanmugaraj, president and chief executive officer of Acacia Communications. "During the quarter, we made good progress on ramping production of our CFP2-ACO and CFP2-DCO modules with our contract manufacturers and we continue to see strong customer interest for these products. We believe that our continued innovation with products like our CFP2-DCO will further advance our technology leadership position and contribute to our growth in the second half of 2017 and beyond."
For the second-quarter, Acacia Communications, Inc. expects revenue to be in the range of $85 million to $95 million. It projects adjusted net income to be in the range of $10 million to $15 million. It projects diluted earnings per share to be in the range of $0.22 to $0.35 on an adjusted basis for the same period.
Operating cash flow improves significantly
Acacia Communications, Inc. has generated cash of $15.90 million from operating activities during the quarter, up 33.66 percent or $4.01 million, when compared with the last year period.
The company has spent $83.36 million cash to meet investing activities during the quarter as against cash outgo of $6.23 million in the last year period.
Cash flow from financing activities was $0.70 million for the quarter as against cash outgo of $0.39 million in the last year period.
Cash and cash equivalents stood at $139.64 million as on Mar. 31, 2017, up 324.57 percent or $106.75 million from $32.89 million on Mar. 31, 2016.
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