Arista Networks, Inc. (ANET) has reported a 33.83 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $58.78 million, or $0.79 a share in the quarter, compared with $43.92 million, or $0.60 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $77.48 million, or $1.04 a share compared with $57.47 million or $0.80 a share, a year ago.
Revenue during the quarter surged 33.62 percent to $327.97 million from $245.45 million in the previous year period. Gross margin for the quarter expanded 45 basis points over the previous year period to 64.08 percent. Total expenses were 76.37 percent of quarterly revenues, down from 79.87 percent for the same period last year. This has led to an improvement of 350 basis points in operating margin to 23.63 percent.
Operating income for the quarter was $77.50 million, compared with $49.40 million in the previous year period.
However, the adjusted operating income for the quarter stood at $106.03 million compared to $71.33 million in the prior year period. At the same time, adjusted operating margin improved 327 basis points in the quarter to 32.33 percent from 29.06 percent in the last year period.
"2016 was indeed a historic year for Arista, as we exceeded one billion dollars in annual sales within two years of becoming a public company," stated Jayshree Ullal, Arista president and chief executive officer. "Our customers are adopting cloud networking at an unprecedented pace."
For the first-quarter, Arista Networks, Inc. forecasts revenue to be in the range of $320 million to $330 million. It forecasts adjusted operating income to grow at 27 percent for the same period.
Operating cash flow drops significantly
Arista Networks, Inc. has generated cash of $131.44 million from operating activities during the year, down 34.45 percent or $69.09 million, when compared with the last year.
The company has spent $325.98 million cash to meet investing activities during the year as against cash inflow of $184.17 million in the last year.
Cash flow from financing activities was $75.60 million for the year, up 19.80 percent or $12.49 million, when compared with the last year.
Cash and cash equivalents stood at $567.92 million as on Dec. 31, 2016, down 17.37 percent or $119.40 million from $687.33 million on Dec. 31, 2015.
Working capital increases sharply
Arista Networks, Inc. has recorded an increase in the working capital over the last year. It stood at $1,066.57 million as at Dec. 31, 2016, up 44.26 percent or $327.26 million from $739.32 million on Dec. 31, 2015. Current ratio was at 3.32 as on Dec. 31, 2016, down from 4.15 on Dec. 31, 2015.
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