Lantronix, Inc. (LTRX) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.04 million in the quarter, against a net loss of $0.93 million in the last year period. On an adjusted basis, net profit for the quarter was $0.44 million, when compared with net loss $0.20 million in the last year period.
Revenue during the quarter grew 17.63 percent to $11.22 million from $9.54 million in the previous year period. Gross margin for the quarter expanded 369 basis points over the previous year period to 51.79 percent. Operating margin for the quarter period stood at positive 0.59 percent as compared to a negative 9.86 percent for the previous year period.
Operating income for the quarter was $0.07 million, compared with an operating loss of $0.94 million in the previous year period.
"I'm pleased to report that our continued momentum contributed to 18% year-over-year topline growth and allowed us to achieve modest GAAP profitability, as well as our fourth consecutive quarter of non-GAAP net income," said Jeffrey Benck, Lantronix president and CEO. "We've had a strong first half of fiscal 2017, as many of the operational improvements we’ve made over the last year started to bear fruit. With the recent announcement of our MACH10 technology, we are adding a key solution to our IoT product portfolio that can help us solve a bigger part of the challenges that manufacturers face in building smarter, connected machines."
Working capital increases sharply
Lantronix, Inc. has recorded an increase in the working capital over the last year. It stood at $9.61 million as at Dec. 31, 2016, up 33.16 percent or $2.39 million from $7.22 million on Dec. 31, 2015. Current ratio was at 2.13 as on Dec. 31, 2016, up from 1.83 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 46 days for the quarter from 133 days for the last year period. Days sales outstanding went down to 25 days for the quarter compared with 28 days for the same period last year.
Days inventory outstanding has decreased to 65 days for the quarter compared with 157 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 51 for the same period last year.
Debt comes down significantly
Lantronix, Inc. has recorded a decline in total debt over the last one year. It stood at $0.09 million as on Dec. 31, 2016, down 89.76 percent or $0.76 million from $0.85 million on Dec. 31, 2015. Total debt was 0.30 percent of total assets as on Dec. 31, 2016, compared with 3.14 percent on Dec. 31, 2015.
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