Cavium, Inc (CAVM) saw its loss widen to $121.60 million in the quarter ended compared with $1.03 million a year ago. On the other hand, adjusted net income for the quarter stood at $39.82 million, or $0.56 a share compared with $16.56 million or $0.28 a share, a year ago.
Revenue during the quarter surged 124.04 percent to $226.15 million from $100.94 million in the previous year period. Gross margin for the quarter contracted 2279 basis points over the previous year period to 43.43 percent. Operating margin for the quarter stood at negative 12.89 percent as compared to a negative 0.31 percent for the previous year period.
Operating loss for the quarter was $29.15 million, compared with an operating loss of $0.31 million in the previous year period.
However, the adjusted operating income for the quarter stood at $48.94 million compared to $17.28 million in the prior year period. At the same time, adjusted operating margin improved 452 basis points in the quarter to 21.64 percent from 17.12 percent in the last year period.
Working capital increases sharply
Cavium, Inc has recorded an increase in the working capital over the last year. It stood at $320.88 million as at Dec. 31, 2016, up 63.07 percent or $124.11 million from $196.77 million on Dec. 31, 2015. Current ratio was at 2.91 as on Dec. 31, 2016, down from 4.08 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 45 days for the quarter from 58 days for the last year period. Days sales outstanding went down to 26 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has decreased to 43 days for the quarter compared with 63 days for the previous year period. At the same time, days payable outstanding went down to 24 days for the quarter from 37 for the same period last year.
Debt increases substantially
Cavium, Inc has witnessed an increase in total debt over the last one year. It stood at $732.69 million as on Dec. 31, 2016, up 2,304.95 percent or $702.23 million from $30.47 million on Dec. 31, 2015. Total debt was 44.39 percent of total assets as on Dec. 31, 2016, compared with 7.02 percent on Dec. 31, 2015. Debt to equity ratio was at 0.99 as on Dec. 31, 2016, up from 0.09 as on Dec. 31, 2015. 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: editor@irisindia.net
