Analogic Corporation (ALOG) has reported an 83.94 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $2.53 million, or $0.20 a share in the quarter, compared with $1.38 million, or $0.11 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.37 million, or $0.43 a share compared with $6.97 million or $0.55 a share, a year ago.
Revenue during the quarter grew 5.37 percent to $121.12 million from $114.95 million in the previous year period. Gross margin for the quarter contracted 168 basis points over the previous year period to 42.63 percent. Total expenses were 96.74 percent of quarterly revenues, down from 98.27 percent for the same period last year. This has led to an improvement of 153 basis points in operating margin to 3.26 percent.
Operating income for the quarter was $3.95 million, compared with $1.99 million in the previous year period.
However, the adjusted operating income for the quarter stood at $7.76 million compared to $9.74 million in the prior year period. At the same time, adjusted operating margin contracted 206 basis points in the quarter to 6.41 percent from 8.47 percent in the last year period.
Fred Parks, president and chief executive officer, commented, "Our overall revenue for the first quarter came in as expected whereas operating profit was slightly lower due to segment mix. Security and Medical Imaging grew nicely during the quarter driven by increased market demand whereas Ultrasound growth was negatively impacted by production delays with our general imaging product for our technology partner as well as lower OEM probe revenue as compared with last year. On a positive note, our operating cash flow increased to $27 million."
Working capital decreases marginally
Analogic Corporation has witnessed a decline in the working capital over the last year. It stood at $316.58 million as at Oct. 31, 2016, down 2.91 percent or $9.48 million from $326.06 million on Oct. 31, 2015. Current ratio was at 4.99 as on Oct. 31, 2016, down from 5.27 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 135 days for the quarter from 239 days for the last year period. Days sales outstanding went down to 80 days for the quarter compared with 85 days for the same period last year.
Days inventory outstanding has decreased to 96 days for the quarter compared with 199 days for the previous year period. At the same time, days payable outstanding went down to 41 days for the quarter from 45 for the same period last year.
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