KLA-Tencor Corporation (KLAC) has reported a 56.53 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $238.25 million, or $1.52 a share in the quarter, compared with $152.21 million, or $0.98 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $238.19 million, or $1.52 a share compared with $161.76 million or $1.04 a share, a year ago.

Revenue during the quarter grew 23.46 percent to $876.88 million from $710.24 million in the previous year period. Gross margin for the quarter expanded 324 basis points over the previous year period to 63.68 percent. Total expenses were 61.92 percent of quarterly revenues, down from 69.80 percent for the same period last year. This has led to an improvement of 789 basis points in operating margin to 38.08 percent.

Operating income for the quarter was $333.93 million, compared with $214.46 million in the previous year period.

"I am pleased to announce that KLA-Tencor’s business continues to perform at a very high level, as we delivered another quarter of outstanding results in Q2 of fiscal 2017, exceeding our guidance for shipments, revenue and Non-GAAP earnings per diluted share for the period," commented Rick Wallace, president and chief executive officer of KLA-Tencor. "In addition, new orders topped $1 billion for the first time in the December quarter, reflecting KLA-Tencor’s market leadership and the critical role process control plays in enabling our customers’ success at the leading edge. These outstanding results are against the backdrop of a healthy overall demand environment for wafer fab equipment in the marketplace today, and position KLA-Tencor with good momentum heading into calendar 2017."

Working capital remains almost stable
KLA-Tencor Corporation has recorded an increase in the working capital over the last year. It stood at $2,843.90 million as at Dec. 31, 2016, up 0.62 percent or $17.53 million from $2,826.38 million on Dec. 31, 2015. Current ratio was at 3.39 as on Dec. 31, 2016, down from 4.29 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 124 days for the quarter from 240 days for the last year period. Days sales outstanding went up to 59 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 97 days for the quarter compared with 220 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 38 for the same period last year.