Tessera Technologies (TSRA) has reported 26.71 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $23.82 million, or $0.48 a share in the quarter, compared with $32.50 million, or $0.62 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $28.62 million, or $0.57 a share compared with $34.85 million or $0.65 a share, a year ago.
Revenue during the quarter dropped 7.41 percent to $62.43 million from $67.43 million in the previous year period. Gross margin for the quarter contracted 7 basis points over the previous year period to 99.84 percent. Total expenses were 44.60 percent of quarterly revenues, up from 41.01 percent for the same period last year. That has resulted in a contraction of 359 basis points in operating margin to 55.40 percent.
Operating income for the quarter was $34.59 million, compared with $39.78 million in the previous year period.
"Our third quarter earnings exceeded our guidance range and reflects another strong quarter of financial performance. We continue to see positive momentum in all aspects of the business," said Tom Lacey, Tessera’s chief executive officer. "FotoNation secured a design win with one of the world’s leading Asia-based SOC providers for our imaging processor unit, which is expected to be in silicon in the next few quarters. Additionally, we continued to introduce innovative products during the quarter and announced in August the new OnePlus 3 smartphone is shipping with FotoNation solutions."
For the fourth-quarter, Tessera Technologies expects revenue to be in the range of $70 million to $74 million. The company projects diluted earnings per share to be in the range of $0.44 to $0.49. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.60 to $0.65.
Working capital remains almost stableTessera Technologies has witnessed a decline in the working capital over the last year. It stood at $406.04 million as at Sep. 30, 2016, down 0.78 percent or $3.20 million from $409.24 million on Sep. 30, 2015. Current ratio was at 24.34 as on Sep. 30, 2016, up from 19.55 on Sep. 30, 2015. Days sales outstanding went up to 7 days for the quarter compared with 5 days for the same period last year.
At the same time, days payable outstanding went down to 1007 days for the quarter from 1674 for the same period last year.
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