EMCORE Corporation (EMKR) has reported a 78.01 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.76 million, or $0.07 a share in the quarter, compared with $0.99 million, or $0.04 a share for the same period last year. On the other hand, adjusted pre-tax income from continuing for the quarter stood at $3.50 million, or $0.13 a share compared with $1.28 million or $0.05 a share, a year ago.
Revenue during the quarter surged 34.18 percent to $30.18 million from $22.49 million in the previous year period. Gross margin for the quarter expanded 37 basis points over the previous year period to 33.28 percent. Total expenses were 92.49 percent of quarterly revenues, down from 99.91 percent for the same period last year. This has led to an improvement of 742 basis points in operating margin to 7.51 percent.
Operating income for the quarter was $2.27 million, compared with $0.02 million in the previous year period.
Jeffrey Rittichier, EMCORE's president and chief executive officer remarked, "EMCORE turned in a solid quarter, with excellent growth in revenue and Non-GAAP pre-tax income". Rittichier went on to say, “With our improvement in Non-GAAP operating margin to 11.5%, we‘re rapidly closing in on our target of 12.5% by the end of FY 17".
For the second-quarter, EMCORE Corporation projects revenue to be in the range of $29 million to $31 million.
Working capital drops significantly
EMCORE Corporation has witnessed a decline in the working capital over the last year. It stood at $93.40 million as at Dec. 31, 2016, down 27.28 percent or $35.03 million from $128.43 million on Dec. 31, 2015. Current ratio was at 5.22 as on Dec. 31, 2016, down from 6.89 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 73 days for the quarter from 119 days for the last year period. Days sales outstanding went down to 58 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 64 days for the quarter compared with 98 days for the previous year period. At the same time, days payable outstanding went up to 50 days for the quarter from 43 for the same period last year.
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