Analogic Corporation (ALOG) swung to a net profit for the quarter ended Jan. 31, 2017. The company has made a net profit of $7.51 million, or $ 0.59 a share in the quarter, against a net loss of $2.98 million, or $0.24 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $12.59 million, or $0.99 a share compared with $14.88 million or $1.18 a share, a year ago. Revenue during the quarter went up marginally by 2.87 percent to $131.53 million from $127.87 million in the previous year period. Gross margin for the quarter contracted 211 basis points over the previous year period to 43.86 percent. Total expenses were 92.82 percent of quarterly revenues, down from 98.82 percent for the same period last year. This has led to an improvement of 600 basis points in operating margin to 7.18 percent.
Operating income for the quarter was $9.45 million, compared with $1.51 million in the previous year period.
However, the adjusted operating income for the quarter stood at $16.68 million compared to $19.12 million in the prior year period. At the same time, adjusted operating margin contracted 227 basis points in the quarter to 12.68 percent from 14.95 percent in the last year period.
Fred Parks, president and chief executive officer, commented, "We are pleased with the progress made in the second quarter driven by strong growth in Security on demand for international high-speed threat detection systems. The strength in Security was offset by lower Medical Imaging and Ultrasound revenues."
For fiscal year 2017, Analogic Corporation projects adjusted operating income to grow in the range of 10 percent to11.5. The company forecasts diluted earnings per share to be in the range of $3 to $3.45 on adjusted basis.
Working capital increases
Analogic Corporation has recorded an increase in the working capital over the last year. It stood at $330.62 million as at Jan. 31, 2017, up 9.76 percent or $29.41 million from $301.22 million on Jan. 31, 2016. Current ratio was at 5.65 as on Jan. 31, 2017, up from 4.39 on Jan. 31, 2016. Cash conversion cycle (CCC) has decreased to 115 days for the quarter from 228 days for the last year period. Days sales outstanding went down to 65 days for the quarter compared with 74 days for the same period last year.
Days inventory outstanding has decreased to 90 days for the quarter compared with 196 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 42 for the same period last year.
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