MKS Instruments, Inc. (MKSI) has reported a 78.23 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $45.49 million, or $0.83 a share in the quarter, compared with $25.52 million, or $0.48 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $57.20 million, or $1.05 a share compared with $18.38 million or $0.34 a share, a year ago.
Revenue during the quarter surged 135.02 percent to $405.14 million from $172.39 million in the previous year period. Gross margin for the quarter expanded 304 basis points over the previous year period to 45.27 percent. Total expenses were 84.57 percent of quarterly revenues, down from 87.12 percent for the same period last year. This has led to an improvement of 255 basis points in operating margin to 15.43 percent.
Operating income for the quarter was $62.51 million, compared with $22.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $83.44 million compared to $24.89 million in the prior year period. At the same time, adjusted operating margin improved 616 basis points in the quarter to 20.59 percent from 14.44 percent in the last year period.
"The fourth quarter was a strong finish to a transformational year for MKS. We are pleased with our sales of $405 million in the quarter, which rose 6% sequentially after a strong Q3," said Gerald Colella, Chief Executive Officer and President. Mr. Colella added, "The integration with Newport is proceeding very well, and exiting 2016 we have realized almost $20 million of synergies on an annualized basis. We are tracking ahead of plan and are pleased to announce that we now expect to achieve total synergies of $40 million by the end of 2018, up from our previously announced goal of $35 million.
For the first-quarter, MKS Instruments, Inc. projects revenue to be in the range of $385 million to $425 million. The company expects net income to be in the range of $39.20 million to $52.50 million and adjusted net income to be in the range of $50.70 million to $63.80 million for the first-quarter. It forecasts diluted earnings per share to be in the range of $0.72 to $0.96. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.93 to $1.17.
Working capital declines
MKS Instruments, Inc. has witnessed a decline in the working capital over the last year. It stood at $761.47 million as at Dec. 31, 2016, down 10.26 percent or $87.06 million from $848.53 million on Dec. 31, 2015. Current ratio was at 4.21 as on Dec. 31, 2016, down from 10.33 on Dec. 31, 2015.
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