Cirrus Logic, Inc. (CRUS) has reported an 194.90 percent jump in profit for the quarter ended Dec. 24, 2016. The company has earned $122.04 million, or $1.83 a share in the quarter, compared with $41.38 million, or $0.63 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $124.73 million, or $1.87 a share compared with $54.12 million or $0.82 a share, a year ago.
Revenue during the quarter surged 50.35 percent to $523.03 million from $347.86 million in the previous year period. Gross margin for the quarter expanded 138 basis points over the previous year period to 48.78 percent. Total expenses were 72.05 percent of quarterly revenues, down from 81.63 percent for the same period last year. This has led to an improvement of 958 basis points in operating margin to 27.95 percent.
Operating income for the quarter was $146.19 million, compared with $63.91 million in the previous year period.
However, the adjusted operating income for the quarter stood at $163.97 million compared to $80.38 million in the prior year period. At the same time, adjusted operating margin improved 824 basis points in the quarter to 31.35 percent from 23.11 percent in the last year period.
"Cirrus Logic delivered outstanding revenue, operating profit and earnings per share growth in the December quarter as demand for certain portable audio products accelerated," said Jason Rhode, president and chief executive officer. "The company is delighted to be on track to deliver our third consecutive year of more than 25 percent annual revenue growth. With a comprehensive portfolio of products and extensive roadmap we are well positioned for success in the coming years as demand for innovative audio and voice technology continues to increase."
For the fourth-quarter, Cirrus Logic projects revenue to be in the range of $300 million to $340 million.
Working capital increases sharply
Cirrus Logic, Inc. has recorded an increase in the working capital over the last year. It stood at $612.48 million as at Dec. 24, 2016, up 64.56 percent or $240.28 million from $372.20 million on Dec. 26, 2015. Current ratio was at 3.88 as on Dec. 24, 2016, up from 3.10 on Dec. 26, 2015.
Cash conversion cycle (CCC) has decreased to 17 days for the quarter from 53 days for the last year period. Days sales outstanding went down to 36 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 70 days for the previous year period. At the same time, days payable outstanding went down to 45 days for the quarter from 56 for the same period last year.
Debt comes down significantly
Cirrus Logic, Inc. has recorded a decline in total debt over the last one year. It stood at $100 million as on Dec. 24, 2016, down 37.67 percent or $60.44 million from $160.44 million on Dec. 26, 2015. Cirrus Logic has recorded a decline in long-term debt over the last one year. It stood at $100 million as on Dec. 24, 2016, down 37.67 percent or $60.44 million from $160.44 million on Dec. 26, 2015. Total debt was 6.79 percent of total assets as on Dec. 24, 2016, compared with 12.98 percent on Dec. 26, 2015. Debt to equity ratio was at 0.09 as on Dec. 24, 2016, down from 0.19 as on Dec. 26, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
