National Instruments Corporation (NATI) has reported a 95.18 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $18.15 million, or $0.14 a share in the quarter, compared with $9.30 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $26.95 million, or $0.21 a share compared with $20.27 million or $0.16 a share, a year ago.
Revenue during the quarter grew 4.50 percent to $300.11 million from $287.18 million in the previous year period. Gross margin for the quarter expanded 102 basis points over the previous year period to 74.50 percent. Total expenses were 92.56 percent of quarterly revenues, down from 95.18 percent for the same period last year. This has led to an improvement of 262 basis points in operating margin to 7.44 percent.
Operating income for the quarter was $22.32 million, compared with $13.84 million in the previous year period.
However, the adjusted operating income for the quarter stood at $34.42 million compared to $25.16 million in the prior year period. At the same time, adjusted operating margin improved 271 basis points in the quarter to 11.47 percent from 8.76 percent in the last year period.
"I am pleased by the excellent execution and focus on growth by our entire global team this quarter," said Alex Davern, NI president and chief executive officer. "Our growth has come from an improving industrial economy and a sharp focus on key growth areas within our markets. Investments in RF and wireless, semiconductor test, and software are enabling our customers to use our platform to solve new challenges in 5G, semiconductor test, connected vehicles, and the Industrial Internet of Things. As we look to the rest of the year, we will be disciplined in our focus and execution, in order to achieve our growth and profitability goals."
For the second-quarter 2017, National Instruments Corporation forecasts adjusted revenue to be in the range of $305 million to $335 million. The company expects diluted earnings per share to be in the range of $0.12 to $0.26. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.19 to $0.33.
Operating cash flow improves
National Instruments Corporation has generated cash of $46.68 million from operating activities during the quarter, up 5.21 percent or $2.31 million, when compared with the last year period.
The company has spent $36.28 million cash to meet investing activities during the quarter as against cash inflow of $0.40 million in the last year period.
The company has spent $19.38 million cash to carry out financing activities during the quarter as against cash outgo of $34.75 million in the last year period.
Cash and cash equivalents stood at $279.01 million as on Mar. 31, 2017, up 5.13 percent or $13.61 million from $265.40 million on Mar. 31, 2016.
Working capital increases
National Instruments Corporation has recorded an increase in the working capital over the last year. It stood at $567 million as at Mar. 31, 2017, up 5.31 percent or $28.60 million from $538.41 million on Mar. 31, 2016. Current ratio was at 3.15 as on Mar. 31, 2017, up from 3.11 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 118 days for the quarter from 230 days for the last year period. Days sales outstanding went down to 66 days for the quarter compared with 67 days for the same period last year.
Days inventory outstanding has decreased to 115 days for the quarter compared with 225 days for the previous year period. At the same time, days payable outstanding was almost stable at 63 days for the quarter, when compared with the previous year period.
Debt remains stable
Total debt remained stable at $25 million as on Mar. 31, 2017, when compared with the last year. Long-term debt remained stable at $25 million as on Mar. 31, 2017, when compared with the last year. Total debt was 1.68 percent of total assets as on Mar. 31, 2017, compared with 1.72 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.02 as on Mar. 31, 2017, when compared with the last year.
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