EMCORE Corporation (EMKR) has reported 53.59 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $1.85 million, or $0.07 a share in the quarter, compared with $3.98 million, or $0.15 a share for the same period last year.
Revenue during the quarter surged 51.36 percent to $32.59 million from $21.53 million in the previous year period. Gross margin for the quarter expanded 126 basis points over the previous year period to 33.87 percent. Operating margin for the quarter period stood at positive 5.39 percent as compared to a negative 1.70 percent for the previous year period.
Operating income for the quarter was $1.76 million, compared with an operating loss of $0.37 million in the previous year period.
However, the adjusted operating income for the quarter stood at $3.70 million compared to $0.57 million in the prior year period. At the same time, adjusted operating margin improved 870 basis points in the quarter to 11.36 percent from 2.67 percent in the last year period.
Jeffrey Rittichier, EMCORE's President and chief executive officer remarked, "EMCORE turned in a solid quarter, with excellent growth in revenue and non-GAAP net income. But perhaps more importantly, we transitioned production to our new Beijing facility; opening the door to even more efficient operations going forward." Rittichier went on to say, "The combination of strength in the CATV market, a more efficient manufacturing platform and growth in other high profit margin products gives us confidence that we will exceed our target of 12.5% non-GAAP Operating Margin commitment."
For the third-quarter, Emcore Corp expects revenue to be in the range of $29 million to $31 million.
Working capital drops significantly
EMCORE Corporation has witnessed a decline in the working capital over the last year. It stood at $97.38 million as at Mar. 31, 2017, down 26.80 percent or $35.65 million from $133.03 million on Mar. 31, 2016. Current ratio was at 5.77 as on Mar. 31, 2017, down from 8.39 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 60 days for the quarter from 123 days for the last year period. Days sales outstanding went down to 44 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 55 days for the quarter compared with 99 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 47 for the same period last year.
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