Logitech International Sa (LOGI) has reported 159.96 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $47.04 million, or $0.28 a share in the quarter, compared with $18.10 million, or $0.11 a share for the same period last year. On an adjusted basis, earnings per share were at $0.35 for the quarter compared with $0.25 in the same period last year. Revenue during the quarter grew 8.84 percent to $564.30 million from $518.49 million in the previous year period. Gross margin for the quarter expanded 339 basis points over the previous year period to 36.66 percent. Total expenses were 90.54 percent of quarterly revenues, down from 92.95 percent for the same period last year. This has led to an improvement of 241 basis points in operating margin to 9.46 percent.
Operating income for the quarter was $53.41 million, compared with $36.57 million in the previous year period.
However, the adjusted operating income for the quarter stood at $64.85 million compared to $46.51 million in the prior year period. At the same time, adjusted operating margin improved 252 basis points in the quarter to 11.49 percent from 8.97 percent in the last year period.
"Weve delivered an outstanding quarter - the highest Q2 retail sales in Logitech’s history - and a first half ahead of expectations," said Bracken Darrell, Logitech president and chief executive officer. "Once more this quarter shows our strategy clearly: new product launches that again demonstrate the power of our innovation engine, ongoing operational excellence, and profitable growth across all our regions and in almost all our market opportunities. As we enter the second half of the year and our biggest quarter, we’ve got momentum, a winning product portfolio and a terrific team."
For fiscal year 2017, the company expects adjusted operating income to be in the range of $195 million to $205 million.
Operating cash flow turns positiveLogitech International Sa has generated cash of $87.76 million from operating activities during the first half as against cash outgo of $14.86 million in the last year period. The company has spent $81.48 million cash to meet investing activities during the first six months as against cash outgo of $31.55 million in the last year period.
The company has spent $128.42 million cash to carry out financing activities during the first six months as against cash outgo of $125.95 million in the last year period.
Cash and cash equivalents stood at $395.20 million as on Sep. 30, 2016, up 8.05 percent or $29.43 million from $365.77 million on Sep. 30, 2015.
Working capital declines
Logitech International Sa has witnessed a decline in the working capital over the last year. It stood at $396.67 million as at Sep. 30, 2016, down 12.57 percent or $57.02 million from $453.69 million on Sep. 30, 2015. Current ratio was at 1.72 as on Sep. 30, 2016, down from 1.77 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 15 days for the quarter from 39 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 35 days for the quarter compared with 87 days for the previous year period. At the same time, days payable outstanding went down to 87 days for the quarter from 93 for the same period last year.
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