Kimball Electronics, Inc. (KE) has reported 126.19 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $10.12 million, or $0.36 a share in the quarter, compared with $4.48 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.70 million, or $0.24 a share compared with $4.56 million or $0.16 a share, a year ago.
Revenue during the quarter grew 12.99 percent to $226.45 million from $200.42 million in the previous year period. Gross margin for the quarter expanded 47 basis points over the previous year period to 8.09 percent. Total expenses were 94.34 percent of quarterly revenues, down from 96.55 percent for the same period last year. This has led to an improvement of 221 basis points in operating margin to 5.66 percent.
Operating income for the quarter was $12.82 million, compared with $6.92 million in the previous year period.
However, the adjusted operating income for the quarter stood at $8.82 million compared to $7.06 million in the prior year period. At the same time, adjusted operating margin improved 37 basis points in the quarter to 3.89 percent from 3.52 percent in the last year period.
Donald D. Charron, chairman and chief executive officer, stated, "Continued strength in the automotive market combined with double digit growth in our medical end market vertical helped us set a new quarterly sales record in the first quarter of fiscal year 2017. Our new program launch activity remains high as we continue to work diligently to achieve our goal of $1 billion in annual sales by fiscal year 2018."
For fiscal year 2018, Kimball Electronics forecasts revenue to be $1,000 million.
Operating cash flow turns positive
Kimball Electronics, Inc. has generated cash of $14.04 million from operating activities during the quarter as against cash outgo of $0.53 million in the last year period.
The company has spent $12.28 million cash to meet investing activities during the quarter as against cash outgo of $11.11 million in the last year period.
The company has spent $6.66 million cash to carry out financing activities during the quarter as against cash outgo of $0.69 million in the last year period.
Cash and cash equivalents stood at $50.02 million as on Sep. 30, 2016, down 5.06 percent or $2.66 million from $52.68 million on Sep. 30, 2015.
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