MagnaChip Semiconductor Corporation  (MX) has reported a 438.31 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $43.74 million, or $1.05 a share in the quarter, compared with $8.12 million, or $0.23 a share for the same period last year. On an adjusted basis, net profit for the quarter stood at $0.50 million, or $0.01 a share compared with a net loss of $2.82 million, or $0.08 a share in the last year period.

Revenue during the quarter grew 9.19 percent to $161.71 million from $148.10 million in the previous year period. Gross margin for the quarter expanded 258 basis points over the previous year period to 25.71 percent. Total expenses were 96.06 percent of quarterly revenues, down from 97.12 percent for the same period last year. This has led to an improvement of 106 basis points in operating margin to 3.94 percent.

Operating income for the quarter was $6.37 million, compared with $4.27 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $13.09 million compared with $8.02 million in the prior year period. At the same time, adjusted EBITDA margin improved 268 basis points in the quarter to 8.09 percent from 5.42 percent in the last year period.

"We continued to make significant operational progress in the first quarter, and clearly demonstrated our ongoing commitment to achieve higher gross margin and overall profitability," said YJ Kim, chief executive officer of MagnaChip. "With a balanced portfolio of standard products and analog foundry services, we are well positioned to increase revenue and capitalize on the analog technology trends driving growth in our target markets."

For the second-quarter 2017, MagnaChip Semiconductor Corporation  expects revenue to be in the range of $162 million to $168 million.

Cash flow from investing activities was $10.61 million for the quarter as against cash outgo of $0.16 million in the last year period.

Cash flow from financing activities was almost stable for the quarter at $70.64 million, when compared with the previous year period.

Cash and cash equivalents stood at $132.63 million as on Mar. 31, 2017, up 80.38 percent or $59.10 million from $73.53 million on Mar. 31, 2016.

Working capital increases sharply

MagnaChip Semiconductor Corporation  has recorded an increase in the working capital over the last year. It stood at $171.05 million as at Mar. 31, 2017, up 70.63 percent or $70.80 million from $100.25 million on Mar. 31, 2016. Current ratio was at 2.28 as on Mar. 31, 2017, up from 1.68 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 25 days for the quarter from 46 days for the last year period. Days sales outstanding went up to 51 days for the quarter compared with 47 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went down to 49 days for the quarter from 53 for the same period last year.