II-VI Incorporated (IIVI) has reported 25.86 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $23.90 million, or $0.37 a share in the quarter, compared with $18.99 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $31.50 million, or $0.49 a share compared with $19 million or $0.30 a share, a year ago. Revenue during the quarter grew 21.10 percent to $231.82 million from $191.43 million in the previous year period. Total expenses were 85.69 percent of quarterly revenues, down from 88.10 percent for the same period last year. This has led to an improvement of 242 basis points in operating margin to 14.31 percent.
Operating income for the quarter was $33.18 million, compared with $22.78 million in the previous year period.
However, the adjusted operating income for the quarter stood at $36.70 million compared to $21.70 million in the prior year period.
Vincent D. Mattera, Jr., president and chief executive officer, said "Our second fiscal quarter results reflect our strategy and the results of our efforts to address the growing market opportunities we are seeing, including those in the communications markets. Company margin expansion is being driven by volume and manufacturing efficiencies. With a book to bill ratio of 1.18, we anticipate the momentum we are currently experiencing to continue through the second half of fiscal year 2017."
For the third-quarter, II-VI Incorporated forecasts revenue to be in the range of $234 million to $244 million. The company expects diluted earnings per share to be in the range of $0.31 to $0.36 for the third-quarter.
Operating cash flow declinesII-VI Incorporated has generated cash of $58.69 million from operating activities during the first half, down 5.79 percent or $3.61 million, when compared with the last year period. The company has spent $58.22 million cash to meet investing activities during the first six months as against cash outgo of $19.12 million in the last year period. It has incurred net capital expenditure of $57.24 million on net basis during the first six months, up 199.43 percent or $38.13 million from year ago period.
Cash flow from financing activities was $33.59 million for the first six months as against cash outgo of $35.85 million in the last year period.
Cash and cash equivalents stood at $246.20 million as on Dec. 31, 2016, up 39.03 percent or $69.11 million from $177.08 million on Dec. 31, 2015.
Working capital increases
II-VI Incorporated has recorded an increase in the working capital over the last year. It stood at $449.45 million as at Dec. 31, 2016, up 23.23 percent or $84.72 million from $364.73 million on Dec. 31, 2015. Current ratio was at 3.80 as on Dec. 31, 2016, up from 3.79 on Dec. 31, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 63 days for the same period last year.
Debt increases substantially
II-VI Incorporated has witnessed an increase in total debt over the last one year. It stood at $286.86 million as on Dec. 31, 2016, up 95.82 percent or $140.36 million from $146.49 million on Dec. 31, 2015. Total debt was 22.19 percent of total assets as on Dec. 31, 2016, compared with 14.04 percent on Dec. 31, 2015. Debt to equity ratio was at 0.35 as on Dec. 31, 2016, up from 0.19 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 24.31 for the quarter from 38.15 for the same period last year. 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
