Alpha and Omega Semiconductor Limited (AOSL) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $2.85 million, or $ 0.11 a share in the quarter, against a net loss of $1.61 million, or $0.07 a share in the last year period. On an adjusted basis, net profit for the quarter was $4.40 million, when compared with net loss $0.09 million in the last year period. Revenue during the quarter grew 18.62 percent to $94.69 million from $79.82 million in the previous year period. Gross margin for the quarter expanded 458 basis points over the previous year period to 23.33 percent. Operating margin for the quarter period stood at positive 3 percent as compared to a negative 0.34 percent for the previous year period.
Operating income for the quarter was $2.84 million, compared with an operating loss of $0.27 million in the previous year period.
However, the adjusted operating income for the quarter stood at $4.39 million compared to $1.24 million in the prior year period. At the same time, adjusted operating margin improved 308 basis points in the quarter to 4.64 percent from 1.56 percent in the last year period.
Commenting on the results, Dr. Mike Chang, the chairman and chief executive officer of the company, stated, "Our turnaround efforts continued to produce solid results despite supply constraints at our third-party foundries. The gross margin and the bottom line exceeded expectations by virtue of a favorable product mix of higher margin products. The solid December performance also marked a successful conclusion of AOS recovery plan. In calendar 2016, we improved our financial performance significantly as compared to the prior year, including revenue increase of 14.6%, margin expansion of 390 basis points and return to profitability. As we enter the next chapter of our rejuvenated growth, we are optimistic that the continued execution of our business strategies will create a firm foundation for sustainable growth in the years ahead."
For the third-quarter 2017, Alpha and Omega Semiconductor Limited projects revenue to be in the range of $90 million to $94 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 $156.14 million as at Dec. 31, 2016, up 32.40 percent or $38.21 million from $117.93 million on Dec. 31, 2015. Current ratio was at 3.31 as on Dec. 31, 2016, up from 3.07 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 27 days for the quarter from 73 days for the last year period. Days sales outstanding went down to 30 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 45 days for the quarter compared with 87 days for the previous year period. At the same time, days payable outstanding went down to 48 days for the quarter from 51 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 $2.10 million as on Dec. 31, 2016, up 283.42 percent or $1.56 million from $0.55 million on Dec. 31, 2015. Total debt was 0.58 percent of total assets as on Dec. 31, 2016, compared with 0.18 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
