Acacia Communications, Inc. (ACIA) has reported a 294.71 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $34.89 million, or $0.86 a share in the quarter, compared with $8.84 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $40.91 million, or $1.01 a share compared with $9.41 million or $0.29 a share, a year ago.
Revenue during the quarter surged 106.83 percent to $135.30 million from $65.42 million in the previous year period. Gross margin for the quarter expanded 825 basis points over the previous year period to 46.78 percent. Total expenses were 72.77 percent of quarterly revenues, down from 80.74 percent for the same period last year. This has led to an improvement of 797 basis points in operating margin to 27.23 percent.
Operating income for the quarter was $36.84 million, compared with $12.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $43.52 million compared to $12.83 million in the prior year period. At the same time, adjusted operating margin improved 1255 basis points in the quarter to 32.16 percent from 19.62 percent in the last year period.
"Our third quarter results exceeded our expectations driven by strong global demand for our products across metro and inter-data center networks," said Raj Shanmugaraj, president and chief executive officer of Acacia Communications. "To satisfy this continued demand, we further scaled our manufacturing capacity during the quarter. As was the case in the second quarter, we continued to diversify our revenue base, with two of our newer top tier customers ranking among the top five contributors to our revenue in the third quarter. Additionally, we recently announced sampling of our coherent CFP2-DCO module, leveraging our sixth DSP ASIC developed in 16nm CMOS, which we believe demonstrates our continued technology leadership position."
For the fourth-quarter, Acacia Communications, Inc. forecasts revenue to be in the range of $136 million to $141 million. It expects adjusted net income to be in the range of $36 million to $39 million. It expects diluted earnings per share to be in the range of $0.85 to $0.92 on an adjusted basis for the same period.
Operating cash flow improves significantly
Acacia Communications, Inc. has generated cash of $64.37 million from operating activities during the nine month period, up 706.93 percent or $56.39 million, when compared with the last year period.
The company has spent $65.03 million cash to meet investing activities during the nine month period as against cash outgo of $8.45 million in the last year period.
Cash flow from financing activities was $95.96 million for the nine month period as against cash outgo of $2.61 million in the last year period.
Cash and cash equivalents stood at $122.91 million as on Sep. 30, 2016, up 581.45 percent or $104.88 million from $18.04 million on Sep. 30, 2015.
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