Integrated Device Technology, Inc (IDTI) has reported a 42.03 percent plunge in profit for the quarter ended Oct. 02, 2016. The company has earned $24.59 million, or $0.18 a share in the quarter, compared with $42.42 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $47.43 million, or $0.34 a share compared with $53.94 million or $0.35 a share, a year ago. Revenue during the quarter grew 8.59 percent to $184.06 million from $169.50 million in the previous year period. Gross margin for the quarter contracted 498 basis points over the previous year period to 57.88 percent. Total expenses were 85.13 percent of quarterly revenues, up from 75.21 percent for the same period last year. That has resulted in a contraction of 992 basis points in operating margin to 14.87 percent.
Operating income for the quarter was $27.37 million, compared with $42.02 million in the previous year period.
"Second quarter fiscal 2017 revenue increased by over eight percent as compared with the year ago quarter, and marks our twelfth consecutive quarter of year-over-year revenue growth," commented Gregory Waters, president and chief executive officer. "We are delivering new growth engines to the already strong IDT franchise, along with operating synergies that support our leadership financial model."
Working capital drops significantly
Integrated Device Technology, Inc has witnessed a decline in the working capital over the last year. It stood at $421.31 million as at Oct. 02, 2016, down 29.51 percent or $176.39 million from $597.70 million on Sep. 27, 2015. Current ratio was at 5.28 as on Oct. 02, 2016, down from 8.15 on Sep. 27, 2015. Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 60 days for the last year period. Days sales outstanding went up to 38 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 63 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 39 for the same period last year.
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