Applied Micro Circuits Corp (AMCC) saw its loss narrow to $4.64 million, or $0.05 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $8.06 million, or $0.10 a share. On an adjusted basis, net profit for the quarter stood at $2.13 million, or $0.02 a share compared with a net loss of $2.40 million, or $0.03 a share in the last year period.
Revenue during the quarter grew 5.12 percent to $41.78 million from $39.74 million in the previous year period. Gross margin for the quarter expanded 1089 basis points over the previous year period to 66.21 percent. Operating margin for the quarter stood at negative 11.30 percent as compared to a negative 22.18 percent for the previous year period.
Operating loss for the quarter was $4.72 million, compared with an operating loss of $8.81 million in the previous year period.
Commenting on Applied Micro's fiscal 2017 second quarter results, Dr. Paramesh Gopi, president and chief executive officer, said, "In the second quarter of fiscal 2017 we achieved our seventh consecutive quarter of revenue growth. Our Connectivity business once again drove the improvement in top line results, and higher gross margins combined with greater operating efficiencies led to a return to profitability on a non-GAAP basis."
Operating cash flow drops significantly
Applied Micro Circuits Corp has generated cash of $0.66 million from operating activities during the first half, down 52.06 percent or $0.72 million, when compared with the last year period.
The company has spent $3.96 million cash to meet investing activities during the first six months as against cash outgo of $16.63 million in the last year period. It has incurred net capital expenditure of $3.31 million on net basis during the first six months, up 326.03 percent or $2.53 million from year ago period.
Cash flow from financing activities was $0.72 million for the first six months as against cash outgo of $0.17 million in the last year period.
Cash and cash equivalents stood at $22.49 million as on Sep. 30, 2016, up 6.71 percent or $1.41 million from $21.08 million on Sep. 30, 2015.
Working capital declines
Applied Micro Circuits Corp has witnessed a decline in the working capital over the last year. It stood at $88.67 million as at Sep. 30, 2016, down 7.65 percent or $7.34 million from $96.02 million on Sep. 30, 2015. Current ratio was at 3.98 as on Sep. 30, 2016, down from 4.42 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 8 days for the quarter from 74 days for the last year period. Days sales outstanding were almost stable at 28 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 43 days for the quarter compared with 104 days for the previous year period. At the same time, days payable outstanding went up to 63 days for the quarter from 59 for the same period last year.
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