Silicon Laboratories, Inc. (SLAB) has reported a 255.41 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $20.11 million, or $0.47 a share in the quarter, compared with $5.66 million, or $0.13 a share for the same period last year.
Revenue during the quarter grew 14.08 percent to $182.61 million from $160.07 million in the previous year period. Gross margin for the quarter expanded 152 basis points over the previous year period to 59.95 percent. Total expenses were 89 percent of quarterly revenues, down from 97 percent for the same period last year. This has led to an improvement of 800 basis points in operating margin to 11 percent.
Operating income for the quarter was $20.08 million, compared with $4.80 million in the previous year period.
"We are very pleased to report outstanding fourth quarter and full-year 2016 financial performance, including 14 percent year-on-year revenue growth in Q4 and eight percent for the year," said Tyson Tuttle, chief executive officer of Silicon Labs. "We are executing on our strategy focused on the IoT and Infrastructure markets, and are seeing our efforts translate into strong financial results, achieving target model for annual growth, gross margin and operating margin in the second half."
For the first-quarter 2017, Silicon Laboratories, Inc expects revenue to be in the range of $174 million to $179 million. The company projects diluted earnings per share to be in the range of $0.21 to $0.27. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.57 to $0.63.
Operating cash flow improves
Silicon Laboratories, Inc has generated cash of $128.91 million from operating activities during the year, up 22.25 percent or $23.46 million, when compared with the last year.
The company has spent $49.58 million cash to meet investing activities during the year as against cash outgo of $49.31 million in the last year.
The company has spent $52.30 million cash to carry out financing activities during the year as against cash outgo of $83.75 million in the last year period.
Cash and cash equivalents stood at $141.11 million as on Dec. 31, 2016, up 23.68 percent or $27.02 million from $114.08 million on Jan. 02, 2016.
Working capital increases sharply
Silicon Laboratories, Inc has recorded an increase in the working capital over the last year. It stood at $351.16 million as at Dec. 31, 2016, up 25.05 percent or $70.34 million from $280.82 million on Jan. 02, 2016. Current ratio was at 3.51 as on Dec. 31, 2016, up from 2.97 on Jan. 02, 2016.
Debt comes down
Silicon Laboratories, Inc has recorded a decline in total debt over the last one year. It stood at $72.50 million as on Dec. 31, 2016, down 6.45 percent or $5 million from $77.50 million on Jan. 02, 2016. Total debt was 6.70 percent of total assets as on Dec. 31, 2016, compared with 7.66 percent on Jan. 02, 2016. Debt to equity ratio was at 0.09 as on Dec. 31, 2016, down from 0.10 as on Jan. 02, 2016. Interest coverage ratio improved to 30.99 for the quarter from 7.18 for the same period last year.
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