AXT, Inc. (AXTI) has reported an 1,483.33 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $0.66 million in the quarter, compared with $0.04 million for the same period last year.
Revenue during the quarter grew 10.17 percent to $20.62 million from $18.71 million in the previous year period. Gross margin for the quarter expanded 243 basis points over the previous year period to 30.50 percent. Total expenses were 93.35 percent of quarterly revenues, down from 97.34 percent for the same period last year. This has led to an improvement of 399 basis points in operating margin to 6.65 percent.
Operating income for the quarter was $1.37 million, compared with $0.50 million in the previous year period.
"Q1 was a busy and productive quarter," said Morris Young, chief executive officer. "We are seeing encouraging progress in the adoption of several emerging technologies and are continuing to invest in our product development, production capacity, and customer engagement and support capabilities in order to position ourselves for coming business opportunities. In addition, we recently completed a successful secondary offering, helping to ensure that AXT is well capitalized for both business expansion and the future relocation of our gallium arsenide production line. And finally, we experienced, and then quickly and effectively recovered from, a short-circuit electrical fire at our Beijing facility. I am proud of the way our team pulled together with a shared sense of purpose to support all of our key stakeholders, including our customers, investors, and fellow employees. 2017 will likely be an important year for AXT, and I believe we are taking the correct steps to ready our business for our next phase of growth."
Working capital increases sharply
AXT, Inc. has recorded an increase in the working capital over the last year. It stood at $122.60 million as at Mar. 31, 2017, up 46.56 percent or $38.95 million from $83.65 million on Mar. 31, 2016. Current ratio was at 8.63 as on Mar. 31, 2017, up from 7.25 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 156 days for the quarter from 304 days for the last year period. Days sales outstanding went down to 79 days for the quarter compared with 93 days for the same period last year.
Days inventory outstanding has decreased to 123 days for the quarter compared with 260 days for the previous year period. At the same time, days payable outstanding went down to 46 days for the quarter from 49 for the same period last year.
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