Ubiquiti Networks, Inc (UBNT) has reported 22.26 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $64.43 million, or $0.77 a share in the quarter, compared with $52.70 million, or $0.62 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $64.61 million, or $0.78 a share compared with $53.03 million or $0.63 a share, a year ago. Revenue during the quarter surged 30.42 percent to $218.36 million from $167.43 million in the previous year period. Gross margin for the quarter contracted 389 basis points over the previous year period to 45.38 percent. Total expenses were 66.38 percent of quarterly revenues, up from 64.08 percent for the same period last year. That has resulted in a contraction of 230 basis points in operating margin to 33.62 percent.
Operating income for the quarter was $73.41 million, compared with $60.14 million in the previous year period.
For the fourth-quarter 2017, Ubiquiti Networks, Inc projects revenue to be in the range of $215 million to $225 million and its diluted earnings per share to be in the range of $0.69 to $0.74 and its adjusted diluted earnings per share to be in the range of $0.70 to $0.75.
Working capital increases sharply
Ubiquiti Networks, Inc has recorded an increase in the working capital over the last year. It stood at $763.61 million as at Mar. 31, 2017, up 30.73 percent or $179.50 million from $584.11 million on Mar. 31, 2016. Current ratio was at 8.71 as on Mar. 31, 2017, down from 11.19 on Mar. 31, 2016. Cash conversion cycle (CCC) has increased to 53 days for the quarter from 19 days for the last year period. Days sales outstanding went up to 39 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding has increased to 50 days for the quarter compared with 41 days for the previous year period. At the same time, days payable outstanding went down to 36 days for the quarter from 39 for the same period last year.
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