Alpha and Omega Semiconductor Limited (AOSL) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $3.56 million, or $ 0.14 a share in the quarter, against a net loss of $1.26 million, or $0.06 a share in the last year period. On an adjusted basis, net profit for the quarter was $5.27 million, when compared with net loss $0.09 million in the last year period. Revenue during the quarter grew 12.40 percent to $93.28 million from $82.99 million in the previous year period. Gross margin for the quarter expanded 467 basis points over the previous year period to 24.33 percent. Operating margin for the quarter period stood at positive 3.22 percent as compared to a negative 0.21 percent for the previous year period.
Operating income for the quarter was $3 million, compared with an operating loss of $0.17 million in the previous year period.
However, the adjusted operating income for the quarter stood at $4.72 million compared to $1 million in the prior year period. At the same time, adjusted operating margin improved 385 basis points in the quarter to 5.06 percent from 1.21 percent in the last year period.
Commenting on the March quarterly results, Dr. Mike Chang, the chairman and chief executive officer of the company, stated, "Our new product momentum continued to contribute to the revenue and gross margin growth. AOS reported $93.3 million in revenue, close to the high-end of our guidance range, representing an increase of 12.4% from the revenue in the same quarter a year ago. We also posted the eighth consecutive quarter of gradual gross margin expansion and delivered $0.21 non-GAAP earnings per share despite the fact that the March quarter is seasonally our lowest quarter. This, once again, demonstrates the strength of AOS recovery strategy that is now translating into a sustained improvement of our financial performance. We are also taking proactive and deliberate steps to gradually alleviate capacity constraints, and we expect to see higher production output starting in the September quarter. The entire team at AOS continues to keenly focus on developing differentiated technologies and introducing market driven new products, which we believe will further propel our business growth and profitability."
For the fourth-quarter, Alpha and Omega Semiconductor Limited forecasts revenue to be in the range of $95 million to $99 million.
Working capital increasesAlpha and Omega Semiconductor Limited has recorded an increase in the working capital over the last year. It stood at $144 million as at Mar. 31, 2017, up 24.02 percent or $27.89 million from $116.11 million on Mar. 31, 2016. Current ratio was at 2.97 as on Mar. 31, 2017, up from 2.62 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 20 days for the quarter from 65 days for the last year period. Days sales outstanding went down to 23 days for the quarter compared with 32 days for the same period last year.
Days inventory outstanding has decreased to 47 days for the quarter compared with 88 days for the previous year period. At the same time, days payable outstanding went down to 50 days for the quarter from 55 for the same period last year.
Debt increases substantially
Alpha and Omega Semiconductor Limited has witnessed an increase in total debt over the last one year. It stood at $1.89 million as on Mar. 31, 2017, up 530.33 percent or $1.59 million from $0.30 million on Mar. 31, 2016. Total debt was 0.51 percent of total assets as on Mar. 31, 2017, compared with 0.10 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.01 as on Mar. 31, 2017, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
