On a non-GAAP basis, net income was $9 million or $0.32 per diluted share compared to a net loss of $1.9 million a year ago and net income of $11.4 million in the prior quarter.
Turning our attention now to the balance sheet. Cash and cash equivalents at the end of the quarter was $131.8 million compared with $155.8 million at the end of Q1. This reduction, as forecast, was primarily related to the increase in working capital required for the HDD Capital Equipment business and the increase in disk drive inventories where certain hubbing arrangements have been restricted in the near term. Additionally, the reduction included expenditures for share repurchases of $3.6 million in the quarter.
Cash used in operations was $15.2 million in the quarter. Inventory increased by $27.9 million to $180.3 million in the quarter as described above. Inventory turns were 6 compared to 6.5 for the previous quarter. Accounts receivable decreased by $11.5 million in the quarter to $163.6 million. Days sales outstanding were 46, unchanged from the previous quarter.
Headcount at the end of the May quarter was 2,003 permanent employees, an increase of 53 or 2.7% over the past quarter, primarily in our Asia-based operations and field service organizations in support of the increased HDD Capital Equipment production and installation, as well as our new Software Center of Excellence in Waterloo, Canada.Read the rest of this transcript for free on seekingalpha.com
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