Ultra Clean Holdings, Inc. (UCTT) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $14.34 million, or $ 0.42 a share in the quarter, against a net loss of $3.24 million, or $0.10 a share in the last year period. On an adjusted basis, net profit for the quarter was $15.89 million, when compared with net loss $0.13 million in the last year period.
Revenue during the quarter surged 82.30 percent to $204.59 million from $112.23 million in the previous year period. Gross margin for the quarter expanded 534 basis points over the previous year period to 18.33 percent. Operating margin for the quarter period stood at positive 9.66 percent as compared to a negative 0.62 percent for the previous year period.
Operating income for the quarter was $19.77 million, compared with an operating loss of $0.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21 million compared to $0.92 million in the prior year period. At the same time, adjusted operating margin improved 945 basis points in the quarter to 10.27 percent from 0.82 percent in the last year period.
"Disciplined and focused execution by the UCT team enabled us to outperform for the fifth consecutive quarter," said Jim Scholhamer, president and chief executive officer. "During this period of extraordinary semiconductor equipment demand, we have consistently responded and quickly ramped our operations, allowing us to meet our customers' needs and be a vital contributor to their success. We continue to increase UCT's presence on our customers' product platforms and are expanding our opportunities for future growth."
For the second-quarter 2017, Ultra Clean Holdings, Inc. expects revenue to be in the range of $210 million to $220 million. The company projects diluted earnings per share to be in the range of $0.46 to $0.52. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.49 to $0.55.
Working capital increases
Ultra Clean Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $147.91 million as at Mar. 31, 2017, up 22.22 percent or $26.89 million from $121.02 million on Mar. 25, 2016. Current ratio was at 2.13 as on Mar. 31, 2017, down from 2.52 on Mar. 25, 2016.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 80 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 51 days for the same period last year.
Days inventory outstanding has decreased to 34 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 43 for the same period last year.
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