Power Integrations (POWI) has reported 23.03 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $14.16 million, or $0.48 a share in the quarter, compared with $11.51 million, or $0.39 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.24 million, or $0.72 a share compared with $16.22 million or $0.55 a share, a year ago. 

Revenue during the quarter grew 16.78 percent to $103.79 million from $88.88 million in the previous year period. Gross margin for the quarter contracted 36 basis points over the previous year period to 49.32 percent. Total expenses were 86.06 percent of quarterly revenues, down from 86.74 percent for the same period last year. This has led to an improvement of 68 basis points in operating margin to 13.94 percent.

Operating income for the quarter was $14.47 million, compared with $11.78 million in the previous year period.

However, the adjusted operating income for the quarter stood at $21.78 million compared to $16.77 million in the prior year period. At the same time, adjusted operating margin improved 211 basis points in the quarter to 20.98 percent from 18.87 percent in the last year period.

Commented Balu Balakrishnan, president and chief executive officer of Power Integrations: "Our quarterly revenues grew 17 percent year-over-year, surpassing $100 million for the first time. We believe we are on track for double-digit revenue growth in 2016, and we expect to carry strong momentum into 2017 on the strength of the InnoSwitch™ product cycle, new products for the high-power and lighting markets, and a robust product pipeline that will further expand our addressable market in the years ahead."

For the fourth-quarter, Power Integrations forecasts revenue to be in the range of $104 million to $98 million.                                             

The company has spent $55.34 million cash to meet investing activities during the nine month period as against cash outgo of $11.03 million in the last year period.

The company has spent $9.02 million cash to carry out financing activities during the nine month period as against cash outgo of $57.33 million in the last year period.

Cash and cash equivalents stood at $95.89 million as on Sep. 30, 2016, up 60.53 percent or $36.16 million from $59.74 million on Sep. 30, 2015.

Working capital increases sharply
Power Integrations has recorded an increase in the working capital over the last year. It stood at $239.42 million as at Sep. 30, 2016, up 42.44 percent or $71.33 million from $168.09 million on Sep. 30, 2015. Current ratio was at 5.05 as on Sep. 30, 2016, up from 4.04 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 80 days for the last year period. Days sales outstanding were almost stable at 12 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 44 days for the quarter compared with 123 days for the previous year period. At the same time, days payable outstanding went down to 53 days for the quarter from 56 for the same period last year.