Masimo Corporation (MASI) has reported 793.29 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $215.29 million, or $3.97 a share in the quarter, compared with $24.10 million, or $0.46 a share for the same period last year. Revenue during the quarter grew 9.52 percent to $183.20 million from $167.27 million in the previous year period. Gross margin for the quarter expanded 704 basis points over the previous year period to 67.86 percent. Total expenses were 69.43 percent of quarterly revenues, down from 77.95 percent for the same period last year.
Operating income for the quarter was $310.40 million, compared with $36.89 million in the previous year period.
Joe Kiani, chairman and chief executive officer of Masimo, said, "We are happy to report that we were able to finish the year on a very strong note as demand for our products throughout the world continues to increase with an especially strong fourth quarter in the U.S. Healthy product revenue growth, coupled with continued product margin expansion and controlled operating expenses has allowed Masimo to achieve the highest quarterly operating income in our history. We are also very happy to report that our estimate of total worldwide installed base has for the first time ever exceeded 1.5 million SET® Pulse Oximeters and rainbow SET™ Pulse CO-Oximeters."
Masimo Corp expects revenue to be $752 million for fiscal year 2017. For fiscal year 2017, the company projects diluted earnings per share to be $2.30.
Operating cash flow improves significantlyMasimo Corporation has generated cash of $416.84 million from operating activities during the year, up 255.63 percent or $299.63 million, when compared with the last year. The company has spent $25.11 million cash to meet investing activities during the year as against cash outgo of $54.59 million in the last year.
The company has spent $216.62 million cash to carry out financing activities during the year as against cash outgo of $62.07 million in the last year period.
Cash and cash equivalents stood at $305.97 million as on Dec. 31, 2016, up 131.24 percent or $173.65 million from $132.32 million on Jan. 02, 2016.
Working capital increases sharply
Masimo Corporation has recorded an increase in the working capital over the last year. It stood at $286.86 million as at Dec. 31, 2016, up 72.28 percent or $120.35 million from $166.51 million on Jan. 02, 2016. Current ratio was at 2.30 as on Dec. 31, 2016, up from 2.26 on Jan. 02, 2016.
Cash conversion cycle (CCC) has increased to 57 days for the quarter from 47 days for the last year period. Days sales outstanding went up to 25 days for the quarter compared with 22 days for the same period last year.
Days inventory outstanding has increased to 56 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went up to 24 days for the quarter from 18 for the same period last year.
Debt comes down significantly
Masimo Corporation has recorded a decline in total debt over the last one year. It stood at $0.07 million as on Dec. 31, 2016, down 99.96 percent or $185.07 million from $185.14 million on Jan. 02, 2016. Total debt was 0.01 percent of total assets as on Dec. 31, 2016, compared with 30.77 percent on Jan. 02, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
