Kulicke and Soffa Industries, Inc. (KLIC) has reported 470.66 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $29.04 million, or $0.40 a share in the quarter, compared with $5.09 million, or $0.07 a share for the same period last year.
Revenue during the quarter grew 27.63 percent to $199.61 million from $156.40 million in the previous year period. Gross margin for the quarter expanded 70 basis points over the previous year period to 45.23 percent. Total expenses were 83.67 percent of quarterly revenues, down from 92.51 percent for the same period last year. This has led to an improvement of 885 basis points in operating margin to 16.33 percent.
Operating income for the quarter was $32.60 million, compared with $11.71 million in the previous year period.
Dr. Fusen Chen, Kulicke & Soffa's president and chief executive officer, stated, "Automotive, industrial, mobile, LED, and IOT related wireless-connectivity applications are all driving the strong level of current demand in our business. The higher level of wire bonding, wedge bonding and expendable tools demand highlights the pervasive nature of our core business during the current period of industry capacity expansion."
For the third-quarter, Kulicke & Soffa Industries forecasts revenue to be in the range of $235 million to $245 million.
Operating cash flow turns positive
Kulicke and Soffa Industries, Inc. has generated cash of $42.98 million from operating activities during the first half as against cash outgo of $0.98 million in the last year period.
The company has spent $32.40 million cash to meet investing activities during the first six months as against cash outgo of $1.79 million in the last year period.
The company has spent $0.64 million cash to carry out financing activities during the first six months as against cash outgo of $14.09 million in the last year period.
Cash and cash equivalents stood at $435.20 million as on Apr. 01, 2017, down 9.71 percent or $46.79 million from $481.99 million on Apr. 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 $702.88 million as at Apr. 01, 2017, up 12.45 percent or $77.80 million from $625.08 million on Apr. 02, 2016. Current ratio was at 5.49 as on Apr. 01, 2017, down from 6.40 on Apr. 02, 2016.
Cash conversion cycle (CCC) has decreased to 57 days for the quarter from 108 days for the last year period. Days sales outstanding went down to 63 days for the quarter compared with 79 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 78 days for the previous year period. At the same time, days payable outstanding went down to 48 days for the quarter from 49 for the same period last year.
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