Advanced Energy Industries, Inc. (AEIS) has reported an 84.77 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $30.36 million, or $0.76 a share in the quarter, compared with $16.43 million, or $0.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $30.78 million, or $0.77 a share compared with $24.95 million or $0.60 a share, a year ago.
Revenue during the quarter grew 15.30 percent to $126.55 million from $109.76 million in the previous year period. Gross margin for the quarter contracted 109 basis points over the previous year period to 52.25 percent. Total expenses were 72.85 percent of quarterly revenues, up from 72.51 percent for the same period last year. That has resulted in a contraction of 33 basis points in operating margin to 27.15 percent.
Operating income for the quarter was $34.36 million, compared with $30.17 million in the previous year period.
However, the adjusted operating income for the quarter stood at $36.71 million compared to $32.32 million in the prior year period. At the same time, adjusted operating margin contracted 44 basis points in the quarter to 29.01 percent from 29.44 percent in the last year period.
"After a third straight quarter of compelling top and bottom line performance driven by strength in semiconductors, flat panel display and services, 2016 is shaping up to be an impressive year for AE," said Yuval Wasserman, president and chief executive officer of Advanced Energy. "Our leading precision power products and services continue to be chosen by our customers to support their move to next-generation technologies such as 3DNAND and 10nm Logic. With our semiconductor business showing no signs of slowing and the diversity of our Industrial applications growing, we are getting closer to our near-term aspirational goals."
For the fourth-quarter 2016, Advanced Energy Industries, Inc. forecasts revenue to be in the range of $124 million to $134 million. The company expects diluted earnings per share to be in the range of $0.70 to $0.80. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.75 to $0.85.
Working capital increases sharply
Advanced Energy Industries, Inc. has recorded an increase in the working capital over the last year. It stood at $325.39 million as at Sep. 30, 2016, up 29.80 percent or $74.71 million from $250.68 million on Sep. 30, 2015. Current ratio was at 4.41 as on Sep. 30, 2016, up from 2.76 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 129 days for the last year period. Days sales outstanding went down to 66 days for the quarter compared with 84 days for the same period last year.
Days inventory outstanding has decreased to 43 days for the quarter compared with 135 days for the previous year period. At the same time, days payable outstanding went down to 66 days for the quarter from 89 for the same period last year.
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