Lumentum Holdings Inc. (LITE) has reported 321.43 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $11.80 million, or $0.19 a share in the quarter, compared with $2.80 million, or $0.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.90 million, or $0.57 a share compared with $19.10 million or $0.31 a share, a year ago.
Revenue during the quarter grew 21.39 percent to $265 million from $218.30 million in the previous year period. Gross margin for the quarter expanded 163 basis points over the previous year period to 32.83 percent. Total expenses were 94.98 percent of quarterly revenues, down from 97.16 percent for the same period last year. This has led to an improvement of 218 basis points in operating margin to 5.02 percent.
Operating income for the quarter was $13.30 million, compared with $6.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $39 million compared to $19.60 million in the prior year period. At the same time, adjusted operating margin improved 574 basis points in the quarter to 14.72 percent from 8.98 percent in the last year period.
"We achieved record revenue of $265.0 million, growing 21% year over year," said Alan Lowe, president and chief executive officer. "Strong growth in new product revenue, particularly 100G datacom, which was up 124% sequentially and more than 500% year over year, drove operating margin to a new record high of 14.7%."
For the third-quarter, Lumentum expects revenue to be in the range of $250 million to $265 million. The company expects adjusted operating income to grow in the range of 12.50 percent to 14 percent. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.46 to $0.54.
Working capital increases marginally
Lumentum Holdings Inc. has recorded an increase in the working capital over the last year. It stood at $325.60 million as at Dec. 31, 2016, up 1.34 percent or $4.30 million from $321.30 million on Dec. 26, 2015. Current ratio was at 2.61 as on Dec. 31, 2016, down from 3.04 on Dec. 26, 2015.
Cash conversion cycle (CCC) has decreased to 37 days for the quarter from 75 days for the last year period. Days sales outstanding went down to 60 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 31 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding was almost stable at 54 days for the quarter, when compared with the previous year period.
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