Diodes Incorporated (DIOD) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $1.22 million, or $ 0.02 a share in the quarter, against a net loss of $1.73 million, or $0.04 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $7.03 million, or $0.14 a share compared with $5.89 million or $0.12 a share, a year ago.
Revenue during the quarter grew 6.09 percent to $236.30 million from $222.74 million in the previous year period. Gross margin for the quarter expanded 245 basis points over the previous year period to 31.28 percent. Total expenses were 96.04 percent of quarterly revenues, down from 99.35 percent for the same period last year. This has led to an improvement of 331 basis points in operating margin to 3.96 percent.
Operating income for the quarter was $9.36 million, compared with $1.46 million in the previous year period.
Commenting on the results, Dr. Keh-Shew Lu, president and chief executive officer, stated, "Revenue in the quarter was at the high end of guidance, increasing almost 2 percent sequentially as compared to typical seasonality of down 5 to 10 percent. Sales in Europe were particularly strong with a resurgence in revenue from the industrial market, combined with strengthening demand in North America. Additionally, our automotive revenue continued to grow from the record level achieved last year, resulting in growth of almost 25 percent over the prior year quarter."
For the second-quarter, Diodes Incorporated projects revenue to be in the range of $250 million to $270 million.
Working capital decreases marginally
Diodes Incorporated has witnessed a decline in the working capital over the last year. It stood at $551.38 million as at Mar. 31, 2017, down 3.51 percent or $20.04 million from $571.42 million on Mar. 31, 2016. Current ratio was at 3.93 as on Mar. 31, 2017, down from 4.30 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 85 days for the quarter from 156 days for the last year period. Days sales outstanding went down to 81 days for the quarter compared with 89 days for the same period last year.
Days inventory outstanding has decreased to 53 days for the quarter compared with 117 days for the previous year period. At the same time, days payable outstanding was almost stable at 49 days for the quarter, when compared with the previous year period.
Debt comes down
Diodes Incorporated has recorded a decline in total debt over the last one year. It stood at $416.43 million as on Mar. 31, 2017, down 7.51 percent or $33.81 million from $450.24 million on Mar. 31, 2016. Total debt was 27.02 percent of total assets as on Mar. 31, 2017, compared with 28.50 percent on Mar. 31, 2016. Debt to equity ratio was at 0.49 as on Mar. 31, 2017, down from 0.53 as on Mar. 31, 2016. Interest coverage ratio improved to 2.68 for the quarter from 0.58 for the same period last year.
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