AVX Corp (AVX), a manufacturer various passive electronic components, has recorded a 47.42 percent surge in profit for the quarter ended Jun. 30, 2014.
The company earned $40.77 million or $0.24 a share in the first-quarter compared with $27.66 million or $0.16 a share a year ago. Analysts on average had predicted net income of $0.17 a share.
Revenue during the first-quarter slipped 5.09 percent to $350.59 million from $369.38 million in the last year period.
Gross margin expanded by 581 basis points over the previous year period to 24.30 percent. Total expenses as a percentage of revenues decreased to 84.15 percent from 89.38 percent in the same period last year. That has resulted in improvement of 522 basis points in operating margins to 15.85 percent.
The company disclosed operating income of $55.55 million, compared with $39.24 million in the last year period.
Chairman and chief executive officer, John Gilbertson, said, ''We saw improved first quarter operating results reflecting our focus on the sale of higher value-added components, sales margin management and cost control. The operating profit margin improved to 15.8%, compared to 10.6% for the same quarter last year.''
Chief financial officer, Kurt Cummings, stated, ''We generated approximately $78 million of cash flow from operations in the quarter as a result of higher net income, lower capital spending and favorable changes in working capital. We continued to use our resources to provide value to our stockholders by paying $16.0 million in dividends.''
Cash Position
As on Jun. 30, 2014, the company's cash balance stood at $333.23 million, down 30.91 percent or $149.06 million from Jun. 30, 2013.
Working Capital
AVX Corp has witnessed a decline in the working capital over the last one year. The company's working capital stood at $1529.10 million as at Jun. 30, 2014, down $81.86 million or 5.08 percent from $1610.96 million on Jun. 30, 2013. It registered an increase in current ratio to 10.04 as at Jun. 30, 2014 from 6.25 on Jun. 30, 2013.
Shares of the company gained $0.08 or 0.62 percent to settle at $12.96 on Monday.