Kulicke and Soffa Industries, Inc (KLIC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $15.58 million in the quarter, against a net loss of $0.09 million in the last year period. Revenue during the quarter surged 37.87 percent to $149.64 million from $108.53 million in the previous year period. Gross margin for the quarter contracted 80 basis points over the previous year period to 45.66 percent. Operating margin for the quarter period stood at positive 11.55 percent as compared to a negative 1.57 percent for the previous year period.
Operating income for the quarter was $17.28 million, compared with an operating loss of $1.70 million in the previous year period.
Dr. Fusen Chen, Kulicke & Soffa's President and Chief Executive Officer, stated, “These strong results, representing a 38% top-line improvement over the same period one year ago, helped drive the strongest December quarter EPS in 8 years. This improvement is largely related to a strengthening environment within our core wire, wedge and consumables businesses facilitated through significant alignment with memory, automotive and industrial applications."
For the second-quarter 2017, Kulicke & Soffa Industries expects revenue to be in the range of $185 million to $195 million.
Operating cash flow improves significantly
Kulicke and Soffa Industries, Inc has generated cash of $30.05 million from operating activities during the quarter, up 290.55 percent or $22.36 million, when compared with the last year period. The company has spent $2.66 million cash to meet investing activities during the quarter as against cash outgo of $1.61 million in the last year period.
Cash flow from financing activities was $0.14 million for the quarter as against cash outgo of $12.42 million in the last year period.
Cash and cash equivalents stood at $577.43 million as on Dec. 31, 2016, up 17.14 percent or $84.49 million from $492.94 million on Jan. 02, 2016.
Working capital increases
Kulicke and Soffa Industries, Inc has recorded an increase in the working capital over the last year. It stood at $678.45 million as at Dec. 31, 2016, up 10.02 percent or $61.80 million from $616.65 million on Jan. 02, 2016. Current ratio was at 6.89 as on Dec. 31, 2016, down from 9.58 on Jan. 02, 2016.
Cash conversion cycle (CCC) has decreased to 76 days for the quarter from 161 days for the last year period. Days sales outstanding went down to 69 days for the quarter compared with 91 days for the same period last year.
Days inventory outstanding has decreased to 47 days for the quarter compared with 116 days for the previous year period. At the same time, days payable outstanding went down to 40 days for the quarter from 46 for the same period last year.
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