Alpha and Omega Semiconductor Limited (AOSL) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $3.31 million, or $ 0.14 a share in the quarter, against a net loss of $1.98 million, or $0.09 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $4.62 million, or $0.19 a share compared with a net loss of $1.19 million, or $0.05 a share in the last year period.
Revenue during the quarter grew 19.55 percent to $97.36 million from $81.44 million in the previous year period. Gross margin for the quarter expanded 404 basis points over the previous year period to 22.54 percent. Operating margin for the quarter period stood at positive 3.84 percent as compared to a negative 0.74 percent for the previous year period.
Operating income for the quarter was $3.74 million, compared with an operating loss of $0.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $5.06 million compared to $0.19 million in the prior year period. At the same time, adjusted operating margin improved 496 basis points in the quarter to 5.20 percent from 0.23 percent in the last year period.
Commenting on the results for the September quarter, Dr. Mike Chang, the chairman and chief executive officer of the company, stated, "AOS delivered strong results that exceeded our guidance. The record high quarterly revenue was driven by solid product execution across all market segments. Coupled with tight operational discipline, we improved our EPS significantly quarter over quarter and year over year. As we have been steadfastly approaching the target of our multi-year recovery plan, we are pleased that we have achieved the revenue level from which we can further demonstrate our scalable business model. We remain confident that all the persistent efforts in the past few years have positioned us well to continue our growth into 2017 and beyond."
For the second-quarter 2017, Alpha and Omega Semiconductor Limited expects revenue to be in the range of $91 million to $95 million.
Working capital increases sharply
Alpha and Omega Semiconductor Limited has recorded an increase in the working capital over the last year. It stood at $152.30 million as at Sep. 30, 2016, up 30.47 percent or $35.57 million from $116.73 million on Sep. 30, 2015. Current ratio was at 3.20 as on Sep. 30, 2016, up from 2.88 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 74 days for the last year period. Days sales outstanding went down to 31 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 43 days for the quarter compared with 87 days for the previous year period. At the same time, days payable outstanding went down to 50 days for the quarter from 57 for the same period last year.
Debt increases substantially
Alpha and Omega Semiconductor Limited has witnessed an increase in total debt over the last one year. It stood at $2.30 million as on Sep. 30, 2016, up 195.24 percent or $1.52 million from $0.78 million on Sep. 30, 2015. Total debt was 0.64 percent of total assets as on Sep. 30, 2016, compared with 0.25 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.01 as on Sep. 30, 2016, when compared with the last year.
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