Hollysys Automation Technologies Ltd (HOLI) has reported a 28.50 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $15.62 million, or $0.26 a share in the quarter, compared with $21.85 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.72 million, or $0.22 a share compared with $23.14 million or $0.38 a share, a year ago. Revenue during the quarter dropped 23.14 percent to $91.30 million from $118.79 million in the previous year period. Gross margin for the quarter contracted 83 basis points over the previous year period to 30.74 percent. Total expenses were 83.93 percent of quarterly revenues, down from 84.52 percent for the same period last year. This has led to an improvement of 59 basis points in operating margin to 16.07 percent.
Operating income for the quarter was $14.67 million, compared with $18.39 million in the previous year period.
Hollysys Automation Technologies forecasts revenue to be in the range of $480 million to $520 million for fiscal year 2017. For the financial year 2017, Hollysys Automation Technologies expects adjusted net income to be in the range of $90 million to $100 million.
Operating cash flow improves
Hollysys Automation Technologies Ltd has generated cash of $41.11 million from operating activities during the nine month period, up 11.49 percent or $4.24 million, when compared with the last year period. The company has spent $74.01 million cash to meet investing activities during the nine month period as against cash outgo of $14.04 million in the last year period. It has incurred net capital expenditure of $0.40 million on net basis during the nine month period, down 92.30 percent or $4.79 million from year ago period.
The company has spent $6.94 million cash to carry out financing activities during the nine month period as against cash outgo of $18.84 million in the last year period.
Cash and cash equivalents stood at $182.48 million as on Mar. 31, 2017, down 8.52 percent or $17 million from $199.48 million on Mar. 31, 2016.
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