Tuesday, INX Inc. (INXI), a provider of technology infrastructure solutions, reported a loss for the third quarter. The loss resulted from a combination of unanticipated product availability issues, which led to an inability to complete certain projects during the quarter, and in turn resulted in lower than expected revenue as well as several unusual expenses totaling over $600 thousand.
Net loss for the quarter was $375 thousand or $0.04 per share, compared with a net income of $380 thousand or $0.04 per share in the comparable period year-earlier.
Non-GAAP net income for the quarter declined to $190 thousand or $0.02 per share from $1.24 million or $0.13 per share in the year-ago period.
On average, four analysts polled by Thomson Reuters estimated earnings of $0.01 per share. Analysts' estimates typically exclude special items.
According to the Houston, Texas-based company, the total revenue for the quarter decreased by 19.6% to $57.9 million from $71.9 million in the prior year period. Four Wall Street analysts estimated revenues of $60.35 million for the quarter.
Segment-wise, product revenue decreased by 21.4% to $46.8 million from $59.6 million year-ago, while service revenue decreased by 10.7% to $11.0 million from $12.4 million in the comparable period year-ago.
Total cost of products and services declined to $44.89 million from $58.61 million in the prior year period. However, selling, general and administrative expenses increased to $13.28 million from $12.59 million in the prior year period.
Commenting on the company's third quarter results, James Long, INX's chairman and chief executive officer said that unanticipated product availability issues from the company's key manufacturer supplier, Cisco Systems, led to an inability to complete certain projects during the quarter, which resulted in lower than expected revenue for the quarter. The combination of revenue being slightly below the lower end of the company's range of expectations and several unusual expense items totaling over $600 thousand resulted in operating income and earnings per share being below what was expected.
Net loss for the nine month period was $558 thousand or $0.06 per share, compared with a net income of $2.50 million or $0.29 per share in the year-ago period. On a non-GAAP basis, year-to-date net income was $1.22 million or earnings of $0.14 per share, compared with $5.3 million or $0.61 per share in the year-ago period. Year-to-date total revenue declined to $173.54 million from $195.57 million year-ago.
INX said that while it cannot predict future economic conditions or general customer demand with certainty, it believes that Cisco's recent announcement of their new Unified Computing System and VMware's recently announced vSphere 4 virtualization software will begin to create improved customer demand for data center solutions, the area of technology infrastructure that offers INX the best growth opportunity.
The company said that based on its current contracts backlog, recent contract bookings trends, estimated sales pipeline and estimates of product availability during the fourth quarter, it expects total fourth quarter revenue to be in the range of $62 million - $65 million, with services revenue making up between $9.0 million - $10.0 million of total revenue. Four Wall Street analysts estimate revenues of $62.72 million.
INXI closed Tuesday's last trade on the Nasdaq at $6.95, up $0.20 or 2.96%.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.