Applied Optoelectronics, Inc. (AAOI) has reported 430.98 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $14.22 million, or $0.77 a share in the quarter, compared with $2.68 million, or $0.15 a share for the same period last year. On an adjusted basis, net profit for the quarter was $15.48 million, when compared with $3.93 million in the last year period.
Revenue during the quarter surged 60.33 percent to $84.90 million from $52.95 million in the previous year period. Gross margin for the quarter expanded 848 basis points over the previous year period to 37.97 percent. Total expenses were 81.34 percent of quarterly revenues, down from 94.80 percent for the same period last year. This has led to an improvement of 1346 basis points in operating margin to 18.66 percent.
Operating income for the quarter was $15.84 million, compared with $2.75 million in the previous year period.
However, the adjusted operating income for the quarter stood at $17.02 million compared to $3.65 million in the prior year period. At the same time, adjusted operating margin improved 1315 basis points in the quarter to 20.04 percent from 6.89 percent in the last year period.
"AOI achieved another record year driven by strong demand for our market-leading datacenter products and continued execution by the AOI team. We believe our record performance further demonstrates our growing market share in advanced optics and our team's ability to generate manufacturing efficiencies that lead to margin improvement," said Dr. Thompson Lin, Applied Optoelectronics, Inc. founder, president and chief executive officer.
For the first-quarter, Applied Optoelectronics, Inc expects revenue to be in the range of $87 million to $91 million. The company projects adjusted net income to be in the range of $15.50 million to $17.20 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.80 to $0.88.
Working capital increases
Applied Optoelectronics, Inc. has recorded an increase in the working capital over the last year. It stood at $97.58 million as at Dec. 31, 2016, up 22.21 percent or $17.73 million from $79.85 million on Dec. 31, 2015. Current ratio was at 2.63 as on Dec. 31, 2016, up from 2.08 on Dec. 31, 2015.
Debt comes down significantly
Applied Optoelectronics, Inc. has recorded a decline in total debt over the last one year. It stood at $42.83 million as on Dec. 31, 2016, down 34.02 percent or $22.08 million from $64.90 million on Dec. 31, 2015. Total debt was 13.29 percent of total assets as on Dec. 31, 2016, compared with 23.73 percent on Dec. 31, 2015. Debt to equity ratio was at 0.19 as on Dec. 31, 2016, down from 0.39 as on Dec. 31, 2015. Interest coverage ratio improved to 39.22 for the quarter from 11.38 for the same period last year.
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