Silicon Laboratories, Inc. (SLAB) has reported an 165.60 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $15.43 million, or $0.36 a share in the quarter, compared with $5.81 million, or $0.14 a share for the same period last year. On an adjusted basis, the company has earned $27.27 million, or $0.63 a share for the quarter.

Revenue during the quarter grew 10.49 percent to $179.03 million from $162.02 million in the previous year period. Gross margin for the quarter contracted 22 basis points over the previous year period to 58.74 percent. Total expenses were 92.92 percent of quarterly revenues, down from 95.77 percent for the same period last year. This has led to an improvement of 286 basis points in operating margin to 7.08 percent.

Operating income for the quarter was $12.68 million, compared with $6.85 million in the previous year period.

However, the adjusted operating profit for the quarter stood at $30.97 million.

"We are very pleased with our first quarter 2017 financial results, reflecting solid year-on-year growth in revenue and profitability," said Tyson Tuttle, chief executive officer of Silicon Labs. "Our Internet of Things and Infrastructure businesses now represent nearly 70 percent of revenue targeting large, high-quality, sustainable, and growing markets."

For the second-quarter 2017, Silicon Laboratories, Inc. expects revenue to be in the range of $184 million to $189 million. The company projects diluted earnings per share to be in the range of $0.27 to $0.33. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.68 to $0.74.

The company has spent $261.83 million cash to meet investing activities during the quarter as against cash outgo of $1.30 million in the last year period.

Cash flow from financing activities was $304.11 million for the quarter as against cash outgo of $28.50 million in the last year period.

Cash and cash equivalents stood at $225.40 million as on Apr. 01, 2017, up 77.91 percent or $98.71 million from $126.69 million on Apr. 02, 2016.

Working capital increases sharply

Silicon Laboratories, Inc. has recorded an increase in the working capital over the last year. It stood at $667.95 million as at Apr. 01, 2017, up 150.96 percent or $401.80 million from $266.15 million on Apr. 02, 2016. Current ratio was at 5.60 as on Apr. 01, 2017, up from 2.72 on Apr. 02, 2016.

Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 54 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 42 days for the same period last year.

Days inventory outstanding has decreased to 38 days for the quarter compared with 70 days for the previous year period. At the same time, days payable outstanding went down to 53 days for the quarter from 58 for the same period last year.