Monolithic Power Systems, Inc. (MPWR) has reported a 28.32 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $14.37 million, or $0.34 a share in the quarter, compared with $11.20 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $27.51 million, or $0.66 a share compared with $22.44 million or $0.55 a share, a year ago.
Revenue during the quarter grew 16.74 percent to $106.46 million from $91.19 million in the previous year period. Gross margin for the quarter expanded 20 basis points over the previous year period to 54.41 percent. Total expenses were 85.91 percent of quarterly revenues, up from 85.40 percent for the same period last year. That has resulted in a contraction of 50 basis points in operating margin to 14.09 percent.
Operating income for the quarter was $15 million, compared with $13.31 million in the previous year period.
However, the adjusted operating income for the quarter stood at $29.45 million compared to $23.79 million in the prior year period. At the same time, adjusted operating margin improved 158 basis points in the quarter to 27.66 percent from 26.08 percent in the last year period.
"Thanks to acceptance of our new product offerings and with our shareholders' support, we will continue to deliver outstanding products to our customers and consistent results to our shareholders," said Michael Hsing, chief executive officer and founder of MPS.
For the fourth-quarter 2016, Monolithic Power Systems projects revenue to be in the range of $101 million to $105 million.
Working capital increases
Monolithic Power Systems, Inc. has recorded an increase in the working capital over the last year. It stood at $311.29 million as at Sep. 30, 2016, up 10.64 percent or $29.95 million from $281.35 million on Sep. 30, 2015. Current ratio was at 6.61 as on Sep. 30, 2016, down from 6.79 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 139 days for the last year period. Days sales outstanding went down to 26 days for the quarter compared with 29 days for the same period last year.
Days inventory outstanding has decreased to 67 days for the quarter compared with 146 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 36 for the same period last year.
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