Inphi Corporation (IPHI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $19.13 million, or $ 0.42 a share in the quarter, against a net loss of $2.74 million, or $0.07 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $20.76 million, or $0.47 a share compared with $12.69 million or $0.30 a share, a year ago.
Revenue during the quarter surged 53.03 percent to $80.91 million from $52.87 million in the previous year period. Gross margin for the quarter contracted 197 basis points over the previous year period to 67.10 percent. Total expenses were 89.54 percent of quarterly revenues, down from 95.84 percent for the same period last year. This has led to an improvement of 630 basis points in operating margin to 10.46 percent.
Operating income for the quarter was $8.46 million, compared with $2.20 million in the previous year period.
“Reporting 53% year-over-year revenue growth in Q4 of 2016 and strong gross margins reflect the strength of Inphi products in addressing the growing demand for optical components in worldwide communications networks,” said Ford Tamer, president and chief executive officer of Inphi Corporation. “We’re also excited about the prospects of ramping ColorZ products into production and now being able to offer a more complete optical platform solution thanks to the acquisition of ClariPhy. With new products available for a market that continues to grow, 2017 holds great promise for another year of strong growth and opportunity for Inphi.”
For the first-quarter, Inphi Corp expects revenue to be in the range of $92.50 million to $94.50 million. Inphi Corp forecasts net loss to be in the range of $10 million to $11.20 million for the first-quarter. Inphi Corp projects adjusted net income to be in the range of $19.20 million to $20.20 million for the first-quarter. The company forecasts diluted loss per share to be in the range of $0.24 to $0.27 for the second-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.43 to $0.45 for the first-quarter.
Working capital increases sharply
Inphi Corporation has recorded an increase in the working capital over the last year. It stood at $433.25 million as at Dec. 31, 2016, up 25.62 percent or $88.35 million from $344.90 million on Dec. 31, 2015. Current ratio was at 7.54 as on Dec. 31, 2016, down from 11.15 on Dec. 31, 2015.
Debt increases substantially
Inphi Corporation has witnessed an increase in total debt over the last one year. It stood at $396.86 million as on Dec. 31, 2016, up 131.13 percent or $225.16 million from $171.70 million on Dec. 31, 2015. Inphi Corp has witnessed an increase in long-term debt over the last one year. It stood at $396.86 million as on Dec. 31, 2016, up 131.13 percent or $225.16 million from $171.70 million on Dec. 31, 2015. Total debt was 40.36 percent of total assets as on Dec. 31, 2016, compared with 34 percent on Dec. 31, 2015. Debt to equity ratio was at 0.86 as on Dec. 31, 2016, up from 0.59 as on Dec. 31, 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
