Huami Corporation (NYSE: HMI) remained among the day gainers and traded with change of 11.27% on volume of 199884 shares in the last session as compared to average volume of 80258 shares. During last trade its minimum price was $9.6 and it gained highest price of $10.75. HMI has total market capitalization of $627700642. Its closing value stands at $10.17.
Huami Corporation (NYSE: HMI) today reported its unaudited financial results for the first quarter ended March 31, 2018.
First Quarter 2018 Financial Results
Revenues increased by 77.0% to RMB585.9 million (US$93.4 million) from RMB331.1 million in the first quarter of 2017, due to an increase in the shipments of both Xiaomi wearable products and self-branded products.
Cost of revenues increased by 70.8% to RMB439.2 million (US$70.0 million) from RMB257.1 million in the first quarter of 2017. The increase was in line with the rapid sales growth of Xiaomi wearable products and self-branded products.
Gross profit increased by 98.3% to RMB146.7 million (US$23.4 million) from RMB74.0 million in the first quarter of 2017. Gross margin increased to 25.0% from 22.3% in the first quarter of 2017. The increase was driven by improved economies of scale and the rapid growth in sales of self-branded products.
Total operating expenses increased by 73.6% to RMB137.8 million (US$22.0 million) from RMB79.4 million in the first quarter of 2017. The Company’s successful IPO and the amendment of certain vesting schedules of previously granted options triggered an acceleration of expense recognition in the first quarter 2018. Excluding share-based compensation expenses, the total operating expenses remained steady compared to the first quarter of 2017.
Research and development expenses increased by 82.3% to RMB73.8 million (US$11.8 million) from RMB40.5 million for the first quarter of 2017, primarily due to an increase in share-based compensation expenses to retain research and development personnel.
General and administrative expenses increased by 72.9% to RMB49.3 million (US$7.9 million) from RMB28.5 million for the first quarter of 2017, primarily due to an increase in share-based compensation expeneses to retain senior management team.
Selling and marketing expenses increased by 41.8% to RMB14.7 million (US$2.4 million) from RMB10.4 million for the first quarter of 2017, primarily due to an increase in salary compensation and share-based compensation expenses to retain sales and marketing personnel.
Operating income was RMB8.8 million (US$1.4 million), compared to operating loss of RMB5.4 million for the first quarter of 2017.
Income before income tax was RMB16.5 million (US$2.6 million), compared to loss before income tax of RMB4.6 million for the first quarter of 2017.
Income tax expenses were RMB2.7 million (US$437 thousand), compared to income tax benefit of RMB603 thousand for the first quarter of 2017.
Net income attributable to Huami Corporation totaled RMB14.8 million (US$2.4 million), compared with net loss attributable to Huami Corporation of RMB4.5 million for the first quarter of 2017.
Net income/(loss) attributable to ordinary shareholders of Huami Corporation increased to RMB8.4 million (US$1.3 million), compared to net loss of RMB14.4 million for the first quarter of 2017.
Basic and diluted net income per share attributable to ordinary shareholders of Huami Corporation was RMB0.05 (US$0.01) and RMB0.05 (US$0.01), respectively, compared to basic and diluted net loss per share of RMB0.23 and RMB0.23, respectively, for the first quarter of 2017.
Adjusted net income attributable to Huami Corporation, which excludes share-based compensation expenses, increased by 817.5% to RMB92.5 million (US$14.8 million) from RMB10.1 million for the first quarter of 2017.
Adjusted basic and diluted net income per share attributable to ordinary shareholders of Huami Corporation was RMB0.47 (US$0.08) and RMB0.39 (US$0.06), respectively, compared to basic and diluted net income per share of RMB0.01 and RMB0.01, respectively, for the first quarter of 2017.
As of March 31, 2018, the Company had cash and cash equivalents of RMB1,117.7 million (US$178.2 million), compared to RMB366.3 million as of December 31, 2017.
For the second quarter of 2018, the Company currently expects:
– Net revenues to be between RMB650.0 million and RMB675.0 million, which would represent an increase of approximately 32.4% to 37.4% from RMB491.1 million for the second quarter of 2017.
The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.
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