Nanometrics (NANO) has reported 54.37 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $5.35 million, or $0.21 a share in the quarter, compared with $3.47 million, or $0.14 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.79 million, or $0.19 a share compared with $3.93 million or $0.16 a share, a year ago.

Revenue during the quarter grew 24.90 percent to $59.31 million from $47.49 million in the previous year period. Gross margin for the quarter contracted 361 basis points over the previous year period to 47.96 percent. Total expenses were 90.71 percent of quarterly revenues, down from 92.15 percent for the same period last year. This has led to an improvement of 143 basis points in operating margin to 9.29 percent.

Operating income for the quarter was $5.51 million, compared with $3.73 million in the previous year period.

However, the adjusted operating income for the quarter stood at $5.84 million compared to $4.19 million in the prior year period. At the same time, adjusted operating margin improved 103 basis points in the quarter to 9.85 percent from 8.82 percent in the last year period.

Year-to-date in 2017, we are seeing continued strengthening in the semiconductor capital spending environment, particularly for 3D-NAND devices," commented Dr. Timothy J. Stultz, president and chief executive officer of Nanometrics. "Whereas we previously forecast a relatively balanced year for revenues, the outlook for the second half of 2017 has strengthened significantly, due to continued spending in Foundry and increased 3D-NAND investments. While first-half 2017 sales are consistent with our prior outlook, we now expect second half revenues will be at least 10% stronger than the first half of 2017.

For the second-quarter, Nanometrics projects revenue to be in the range of $64 million to $68 million. The company forecasts diluted earnings per share to be in the range of $0.28 to $0.34. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.28 to $0.34.

The company has spent $1.85 million cash to meet investing activities during the quarter as against cash outgo of $0.41 million in the last year period.

The company has spent $0.54 million cash to carry out financing activities during the quarter as against cash inflow of $0.19 million in the last year period.

Cash and cash equivalents stood at $47.42 million as on Apr. 01, 2017, up 22.61 percent or $8.74 million from $38.67 million on Mar. 26, 2016.

Working capital increases sharply
Nanometrics has recorded an increase in the working capital over the last year. It stood at $183.75 million as at Apr. 01, 2017, up 30.86 percent or $43.33 million from $140.42 million on Mar. 26, 2016. Current ratio was at 4.87 as on Apr. 01, 2017, up from 3.96 on Mar. 26, 2016.

Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 228 days for the last year period. Days sales outstanding went down to 66 days for the quarter compared with 79 days for the same period last year.

Days inventory outstanding has decreased to 61 days for the quarter compared with 199 days for the previous year period. At the same time, days payable outstanding went down to 45 days for the quarter from 49 for the same period last year.