Advanced Energy Industries, Inc. (AEIS) has reported a 22.10 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $44.28 million, or $1.11 a share in the quarter, compared with $36.26 million, or $0.89 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $42.58 million, or $1.06 a share compared with $12.93 million or $0.32 a share, a year ago.
Revenue during the quarter surged 55.76 percent to $135.34 million from $86.89 million in the previous year period. Gross margin for the quarter expanded 372 basis points over the previous year period to 52.84 percent. Total expenses were 71.52 percent of quarterly revenues, down from 81.39 percent for the same period last year. This has led to an improvement of 987 basis points in operating margin to 28.48 percent.
Operating income for the quarter was $38.55 million, compared with $16.17 million in the previous year period.
However, the adjusted operating income for the quarter stood at $41.57 million compared to $18.02 million in the prior year period. At the same time, adjusted operating margin improved 997 basis points in the quarter to 30.71 percent from 20.74 percent in the last year period.
"AE had an exceptional 2016. Our powerful model generated impressive results across the board, driving significant profitability," said Yuval Wasserman, president and chief executive officer of Advanced Energy. "Our Semiconductor and Service revenues reached new highs, more than offsetting the fourth quarter decline in Industrial applications. We continue to expand our presence as a critical enabler by capitalizing on the build-out and expansion of important semiconductor technologies. We enter 2017 with a healthy outlook, a strong balance sheet and a variety of opportunities that we believe will take AE to the next level and move us closer to our new aspirational goals."
For the first-quarter, Advanced Energy Industries, Inc. forecasts revenue to be in the range of $141 million to $151 million. The company forecasts operating income to grow in the range of 26 percent to 29 percent and forecasts adjusted operating income to grow in the range of 29 percent to 31 percent. It expects diluted earnings per share to be in the range of $0.84 to $0.94. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.90 to $1.
Operating cash flow improves
Advanced Energy Industries, Inc. has generated cash of $118.66 million from operating activities during the year, up 13.22 percent or $13.86 million, when compared with the last year.
Cash flow from investing activities was $0.30 million from investing activities during the year as against cash outgo of $13.26 million in the last year.
Cash flow from financing activities was $2.76 million for the year as against cash outgo of $45.64 million in the last year period.
Cash and cash equivalents stood at $281.95 million as on Dec. 31, 2016, up 77.95 percent or $123.51 million from $158.44 million on Dec. 31, 2015.
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