GigPeak (GIG) has reported 359.16 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.53 million, or $0.02 a share in the quarter, compared with $0.33 million, or $0.01 a share for the same period last year. On an adjusted basis, net profit for the quarter was $3.59 million, when compared with $2.22 million in the last year period. Revenue during the quarter surged 46.43 percent to $16.22 million from $11.08 million in the previous year period. Gross margin for the quarter expanded 582 basis points over the previous year period to 70.98 percent. Total expenses were 87.67 percent of quarterly revenues, down from 96.51 percent for the same period last year. This has led to an improvement of 883 basis points in operating margin to 12.33 percent.
Operating income for the quarter was $2 million, compared with $0.39 million in the previous year period.
However, the adjusted operating income for the quarter stood at $4.06 million compared to $2.27 million in the prior year period. At the same time, adjusted operating margin improved 455 basis points in the quarter to 25.04 percent from 20.50 percent in the last year period.
"Fiscal 2016 was a transformative year for GigPeak and culminated in the best quarterly and annual financial performance in the Companys history," said Dr. Avi Katz, Founder, chairman and chief executive officer of GigPeak, Inc. "We significantly expanded the product portfolio during the year with the strategic acquisition of Magnum Semiconductor. This addition greatly expanded the addressable markets we serve, namely cloud connectivity, which include the network and broadcast segments, and further diversified our revenue stream. In addition, it increased our customer base and drove additional cross-selling opportunities to existing customers. In FY 2016 we also released a large number of new devices to support next generation data center communication links, as well as advanced optical ASICs.
Working capital increasesGigPeak has recorded an increase in the working capital over the last year. It stood at $49.33 million as at Dec. 31, 2016, up 21.38 percent or $8.69 million from $40.64 million on Dec. 31, 2015. Current ratio was at 4.08 as on Dec. 31, 2016, down from 6.31 on Dec. 31, 2015.
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