IXYS Corporation (IXYS) has reported a 20.23 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.94 million, or $0.12 a share in the quarter, compared with $3.27 million, or $0.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.14 million, or $0.16 a share compared with $5.19 million or $0.16 a share, a year ago.
Revenue during the quarter went down marginally by 2.03 percent to $78.63 million from $80.26 million in the previous year period. Gross margin for the quarter contracted 4 basis points over the previous year period to 32.37 percent. Total expenses were 91.39 percent of quarterly revenues, up from 91.24 percent for the same period last year. That has resulted in a contraction of 15 basis points in operating margin to 8.61 percent.
Operating income for the quarter was $6.77 million, compared with $7.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.82 million compared with $10.37 million in the prior year period. At the same time, adjusted EBITDA margin improved 83 basis points in the quarter to 13.76 percent from 12.93 percent in the last year period.
“We are pleased with the increased profitability of IXYS while investing in new products and improved manufacturing efficiencies. We continue to penetrate new applications in the transportation, medical and IoT markets,” said Dr. Nathan Zommer, Founder and CEO of IXYS. “IXYS has focused on designing higher margin products, benefitting from The World of IXYSTM marketing campaign. Today, we offer the total customer solution, from microcontrollers to driver ICs to power semiconductors, which may continue to drive better gross margins going forward.”
Working capital increases sharply
IXYS Corporation has recorded an increase in the working capital over the last year. It stood at $250.42 million as at Sep. 30, 2016, up 47.31 percent or $80.43 million from $169.99 million on Sep. 30, 2015. Current ratio was at 7.85 as on Sep. 30, 2016, up from 3.02 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 103 days for the quarter from 167 days for the last year period. Days sales outstanding went up to 47 days for the quarter compared with 46 days for the same period last year.
Days inventory outstanding has decreased to 78 days for the quarter compared with 144 days for the previous year period. At the same time, days payable outstanding went down to 22 days for the quarter from 23 for the same period last year.
Debt increases substantially
IXYS Corporation has witnessed an increase in total debt over the last one year. It stood at $86.03 million as on Sep. 30, 2016, up 59.37 percent or $32.05 million from $53.98 million on Sep. 30, 2015. Total debt was 20.35 percent of total assets as on Sep. 30, 2016, compared with 13.91 percent on Sep. 30, 2015. Debt to equity ratio was at 0.30 as on Sep. 30, 2016, up from 0.20 as on Sep. 30, 2015.
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