Qorvo (QRVO) saw its loss widen to $78.64 million, or $0.62 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $11.13 million, or $0.08 a share. On the other hand, adjusted net income for the quarter stood at $177.27 million, or $1.35 a share compared with $148.02 million or $1.03 a share, a year ago. Revenue during the quarter surged 33.14 percent to $826.35 million from $620.68 million in the previous year period. Gross margin for the quarter expanded 38 basis points over the previous year period to 37.59 percent. Operating margin for the quarter period stood at positive 7.43 percent as compared to a negative 2.13 percent for the previous year period.
Operating income for the quarter was $61.38 million, compared with an operating loss of $13.21 million in the previous year period.
However, the adjusted operating income for the quarter stood at $208.68 million compared to $156.92 million in the prior year period. At the same time, adjusted operating margin contracted 3 basis points in the quarter to 25.25 percent from 25.28 percent in the last year period.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, "In the December quarter, Qorvo grew 33% year-over-year while exceeding our operating margin target for the quarter. We supported the launch of marquee smartphones and leading China-based OEMs and delivered record revenue in IDP. We did this while qualifying leading technologies for top customer programs, introducing over 100 new products, and achieving key milestones on operational initiatives. Im extremely proud of what the team delivered to position Qorvo for anticipated double-digit revenue growth in fiscal year 2018.
For the fourth-quarter, Qorvo projects adjusted revenue to be in the range of $610 million to $650 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.70 to $0.90 for the fourth-quarter.
Working capital drops significantlyQorvo has witnessed a decline in the working capital over the last year. It stood at $939.32 million as at Dec. 31, 2016, down 39.12 percent or $603.71 million from $1,543.03 million on Jan. 02, 2016. Current ratio was at 2.71 as on Dec. 31, 2016, down from 6.13 on Jan. 02, 2016. Days sales outstanding went up to 49 days for the quarter compared with 34 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 93 days for the previous year period.
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