Arista Networks, Inc (ANET) has reported 135.38 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $82.96 million, or $1.07 a share in the quarter, compared with $35.24 million, or $0.48 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $71.81 million, or $0.93 a share compared with $49.09 million or $0.68 a share, a year ago. Revenue during the quarter surged 38.51 percent to $335.48 million from $242.20 million in the previous year period. Gross margin for the quarter contracted 18 basis points over the previous year period to 63.85 percent. Total expenses were 78.12 percent of quarterly revenues, down from 79.46 percent for the same period last year. This has led to an improvement of 135 basis points in operating margin to 21.88 percent.
Operating income for the quarter was $73.42 million, compared with $49.74 million in the previous year period.
However, the adjusted operating income for the quarter stood at $101.32 million compared to $70.10 million in the prior year period. At the same time, adjusted operating margin improved 126 basis points in the quarter to 30.20 percent from 28.94 percent in the last year period.
"As we kick off 2017, I am pleased with our performance this quarter,” stated Jayshree Ullal, Arista President and Chief executiove Officer. “We continue to experience meaningful relevance as customers shift to cloud networking.”
For the second-quarter 2017, Arista Networks, Inc expects revenue to be in the range of $354 million to $364 million.
Operating cash flow improves significantly
Arista Networks, Inc has generated cash of $162.86 million from operating activities during the quarter, up 111.16 percent or $85.73 million, when compared with the last year period. The company has spent $2.92 million cash to meet investing activities during the quarter as against cash outgo of $60.27 million in the last year period.
Cash flow from financing activities was $18.52 million for the quarter, up 187.73 percent or $12.08 million, when compared with the last year period.
Cash and cash equivalents stood at $746.57 million as on Mar. 31, 2017, up 5.05 percent or $35.90 million from $710.66 million on Mar. 31, 2016.
Working capital increases sharply
Arista Networks, Inc has recorded an increase in the working capital over the last year. It stood at $1,204.31 million as at Mar. 31, 2017, up 48.89 percent or $395.44 million from $808.87 million on Mar. 31, 2016. Current ratio was at 3.26 as on Mar. 31, 2017, down from 4.78 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 115 days for the quarter from 109 days for the last year period. Days sales outstanding went down to 47 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has increased to 106 days for the quarter compared with 92 days for the previous year period. At the same time, days payable outstanding went up to 39 days for the quarter from 36 for the same period last year.
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