Coherent, Inc. (COHR) has reported a 49.90 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $30.41 million, or $1.23 a share in the quarter, compared with $20.29 million, or $0.84 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $63.42 million, or $2.57 a share compared with $23.91 million or $0.99 a share, a year ago.
Revenue during the quarter surged 81.88 percent to $346.07 million from $190.28 million in the previous year period. Gross margin for the quarter contracted 320 basis points over the previous year period to 40.89 percent. Total expenses were 87.81 percent of quarterly revenues, up from 85.66 percent for the same period last year. That has resulted in a contraction of 214 basis points in operating margin to 12.19 percent.
Operating income for the quarter was $42.20 million, compared with $27.28 million in the previous year period.
"Coherent delivered record-setting performance and continues to enjoy a very strong demand environment across its end markets. The FPD business remains robust with an increasing number of opportunities in device packaging that complement our leadership position in ELA. Materials processing also performed well for components, lasers and tools including record orders in medical device manufacturing workstations. All other end markets met or exceeded our expectations and customer engagement is at record levels," said John Ambroseo, Coherent's president and chief executive officer. "The integration of Coherent and Rofin is well underway and there have been few surprises. The project teams are making steady progress and we are on track to meet our synergy targets," he added.
Working capital increases sharply
Coherent, Inc. has recorded an increase in the working capital over the last year. It stood at $809.07 million as at Dec. 31, 2016, up 47.67 percent or $261.20 million from $547.87 million on Jan. 02, 2016. Current ratio was at 3.58 as on Dec. 31, 2016, down from 5.43 on Jan. 02, 2016.
Cash conversion cycle (CCC) has decreased to 114 days for the quarter from 177 days for the last year period. Days sales outstanding went down to 50 days for the quarter compared with 69 days for the same period last year.
Days inventory outstanding has decreased to 86 days for the quarter compared with 135 days for the previous year period. At the same time, days payable outstanding went down to 22 days for the quarter from 27 for the same period last year.
Debt increases substantially
Coherent, Inc. has witnessed an increase in total debt over the last one year. It stood at $7.18 million as on Dec. 31, 2016, up 43.66 percent or $2.18 million from $5 million on Jan. 02, 2016. Total debt was 0.34 percent of total assets as on Dec. 31, 2016, compared with 0.51 percent on Jan. 02, 2016. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year.
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