Gigamon Inc. (GIMO) has reported 150.60 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $6.42 million, or $0.17 a share in the quarter, compared with $2.56 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.35 million, or $0.37 a share compared with $10.57 million or $0.29 a share, a year ago. Revenue during the quarter grew 26.86 percent to $85.03 million from $67.02 million in the previous year period. Gross margin for the quarter expanded 154 basis points over the previous year period to 83.74 percent. Total expenses were 87.07 percent of quarterly revenues, down from 88.09 percent for the same period last year. This has led to an improvement of 102 basis points in operating margin to 12.93 percent.
Operating income for the quarter was $11 million, compared with $7.98 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.14 million compared to $14.12 million in the prior year period. At the same time, adjusted operating margin improved 379 basis points in the quarter to 24.87 percent from 21.07 percent in the last year period.
"Gigamon delivered the second consecutive year of 40% year-over-year revenue growth as we continue to demonstrate leadership in this exciting growth market," said Paul Hooper, chief executive officer of Gigamon. "Our 2016 financial performance is a testimony to our leadership, the demand for visibility to information-in-motion, and the value we deliver to our customers as they secure, manage and understand the complex world of information. During the year, we extended our addressable market by delivering the first to market solution for visibility into the Amazon Web Services cloud and enhanced our security platform in 2016. With our strong leadership in the industry, we believe our security-enabling platform for private, public and hybrid clouds has become an essential component of modern IT infrastructure."
Operating cash flow drops significantlyGigamon Inc. has generated cash of $37.05 million from operating activities during the year, down 41.60 percent or $26.38 million, when compared with the last year. The company has spent $27.28 million cash to meet investing activities during the year as against cash inflow of $13.81 million in the last year.
Cash flow from financing activities was $18.95 million for the year, up 370.78 percent or $14.92 million, when compared with the last year.
Cash and cash equivalents stood at $148.93 million as on Dec. 31, 2016, up 23.89 percent or $28.71 million from $120.21 million on Dec. 26, 2015.
Working capital increases sharply
Gigamon Inc. has recorded an increase in the working capital over the last year. It stood at $246.09 million as at Dec. 31, 2016, up 47.99 percent or $79.80 million from $166.29 million on Dec. 26, 2015. Current ratio was at 3.26 as on Dec. 31, 2016, up from 2.61 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
