Intersil Corporation (ISIL) has reported a 10.27 percent fall in profit for the quarter ended Dec. 30, 2016. The company has earned $19.11 million, or $0.14 a share in the quarter, compared with $21.30 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $27.72 million, or $0.19 a share compared with $27.89 million or $0.20 a share, a year ago.
Revenue during the quarter grew 10.41 percent to $139.81 million from $126.63 million in the previous year period. Gross margin for the quarter expanded 208 basis points over the previous year period to 59.67 percent. Total expenses were 83.69 percent of quarterly revenues, down from 87.45 percent for the same period last year. This has led to an improvement of 376 basis points in operating margin to 16.31 percent.
Operating income for the quarter was $22.81 million, compared with $15.89 million in the previous year period.
However, the adjusted operating income for the quarter stood at $34.19 million compared to $25.30 million in the prior year period. At the same time, adjusted operating margin improved 448 basis points in the quarter to 24.46 percent from 19.98 percent in the last year period.
“I’d like to take this opportunity to thank our employees for their contributions towards making our turnaround a success. Together, we demonstrated our ability to grow Intersil organically while reaching our profitability targets. I look forward to continuing to work together to strengthen our business as we move to the next chapter,” said Necip Sayiner, president and chief executive officer of Intersil.
Operating cash flow declines
Intersil Corporation has generated cash of $104.67 million from operating activities during the year, down 10.54 percent or $12.33 million, when compared with the last year.
The company has spent $83.16 million cash to meet investing activities during the year as against cash outgo of $27.72 million in the last year.
The company has spent $43.22 million cash to carry out financing activities during the year as against cash outgo of $51.46 million in the last year period.
Cash and cash equivalents stood at $224.46 million as on Dec. 30, 2016, down 9.28 percent or $22.95 million from $247.40 million on Jan. 01, 2016.
Working capital increases sharply
Intersil Corporation has recorded an increase in the working capital over the last year. It stood at $266.04 million as at Dec. 30, 2016, up 31.61 percent or $63.89 million from $202.15 million on Jan. 01, 2016. Current ratio was at 2.56 as on Dec. 30, 2016, up from 2.20 on Jan. 01, 2016.
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