Power Integrations (POWI) has reported 35.84 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $14.10 million, or $0.47 a share in the quarter, compared with $10.38 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $19.15 million, or $0.47 a share compared with $16.21 million or $0.35 a share, a year ago.

Revenue during the quarter grew 18.91 percent to $104.69 million from $88.04 million in the previous year period. Gross margin for the quarter contracted 232 basis points over the previous year period to 48.22 percent. Total expenses were 87.66 percent of quarterly revenues, down from 88.13 percent for the same period last year. This has led to an improvement of 46 basis points in operating margin to 12.34 percent.

Operating income for the quarter was $12.92 million, compared with $10.45 million in the previous year period.

However, the adjusted operating income for the quarter stood at $19.41 million compared to $16.50 million in the prior year period. At the same time, adjusted operating margin contracted 20 basis points in the quarter to 18.54 percent from 18.74 percent in the last year period.

Commented Balu Balakrishnan, president and chief executive officer of Power Integrations: "We are off to a strong start in 2017 with 19 percent revenue growth in the first quarter. Our growth is being fueled by innovative products such as our InnoSwitch ICs, and by multi-year secular trends such as energy-efficiency, faster charging for mobile devices, smarter homes and appliances, LED lighting, renewable energy, and the growing use of battery power in transportation, power tools and other applications. We also have a robust pipeline of new products coming to market over the next several quarters, which we believe will further enhance our competitive positioning and expand our addressable market."

For the second-quarter, Power Integrations projects revenue to be in the range of $104 million to $110 million.

The company has spent $22 million cash to meet investing activities during the quarter as against cash outgo of $8.79 million in the last year period.

Cash flow from financing activities was $0.26 million for the quarter as against cash outgo of $6.86 million in the last year period.

Cash and cash equivalents stood at $46.34 million as on Mar. 31, 2017, down 51.09 percent or $48.40 million from $94.74 million on Mar. 31, 2016.

Working capital increases sharply
Power Integrations has recorded an increase in the working capital over the last year. It stood at $282.14 million as at Mar. 31, 2017, up 41.84 percent or $83.23 million from $198.92 million on Mar. 31, 2016. Current ratio was at 6.54 as on Mar. 31, 2017, up from 4.94 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 68 days for the last year period. Days sales outstanding were almost stable at 10 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 42 days for the quarter compared with 102 days for the previous year period. At the same time, days payable outstanding went up to 49 days for the quarter from 43 for the same period last year.