Power Integrations (POWI) has reported 7.21 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $13.62 million, or $0.46 a share in the quarter, compared with $12.70 million, or $0.44 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $20.17 million, or $0.67 a share compared with $16.89 million or $0.58 a share, a year ago. 

Revenue during the quarter grew 15.83 percent to $101.11 million from $87.29 million in the previous year period. Gross margin for the quarter contracted 32 basis points over the previous year period to 48.84 percent. Total expenses were 87.30 percent of quarterly revenues, down from 87.34 percent for the same period last year. This has led to an improvement of 4 basis points in operating margin to 12.70 percent.

Operating income for the quarter was $12.84 million, compared with $11.05 million in the previous year period.

However, the adjusted operating income for the quarter stood at $20.03 million compared to $15.94 million in the prior year period. At the same time, adjusted operating margin improved 155 basis points in the quarter to 19.81 percent from 18.26 percent in the last year period.

Commented Balu Balakrishnan, president and chief executive officer of Power Integrations: "We ended 2016 with another strong quarter, and we’re entering 2017 with momentum fueled by innovative products, an expanding addressable market, and dynamic secular trends such as faster charging for mobile devices, smarter homes and appliances, and the continued global push for greater energy efficiency and cleaner energy."

For the first-quarter, Power Integrations forecasts revenue to be in the range of $99.33 million to $105.47 million.                                             

The company has spent $117.43 million cash to meet investing activities during the year as against cash outgo of $7.74 million in the last year.

The company has spent $8.43 million cash to carry out financing activities during the year as against cash outgo of $55.07 million in the last year period.

Cash and cash equivalents stood at $62.13 million as on Dec. 31, 2016, down 31.03 percent or $27.96 million from $90.09 million on Dec. 31, 2015.

Working capital increases sharply
Power Integrations has recorded an increase in the working capital over the last year. It stood at $258.65 million as at Dec. 31, 2016, up 37.28 percent or $70.24 million from $188.41 million on Dec. 31, 2015. Current ratio was at 5.32 as on Dec. 31, 2016, up from 4.62 on Dec. 31, 2015.