Thursday, STEC Inc. (STEC), a custom memory solutions provider, reported a slip to loss in the fourth-quarter on higher expenses, even as revenues increased 7.4% from the year ago quarter. The company also provided earnings guidance and raised revenue expectations for the first quarter.
For the fourth-quarter, the company reported a net loss of $171 thousand or breakeven per share, compared to net income of $1.11 million or $0.02 per share in the prior year quarter.
Loss from continuing operations was $171 thousand or breakeven per share, compared to income from continuing operations of $1.11 million or $0.03 per share in the prior year quarter. On a non-GAAP basis, earnings from continuing operations were $0.05 per share, compared to $0.07 per share in the year ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.08 per share for the quarter. Analysts' estimate typically excludes special items.
Revenue for the quarter was $56.92 million, up 7.4% from $53.01 million in the comparable quarter last year. Analysts expected the company to report revenue of $56.46 million for the quarter.
Gross profit margin for the quarter was 27.8%, compared to 30.0% in the same quarter last year. General and administrative expenses increased to $7.35 million from $5.00 million in the prior year quarter. Research and development expenses were $6.19 million, up from $4.39 million in the year ago quarter.
Total operating expenses increased to $18.34 million from $14.07 million in the previous year quarter. Operating loss was $2.50 million, compared to operating income of $1.82 million in the same quarter a year ago.
For the quarter, the company had an income tax benefit of $2.41 million, compared to a provision for income tax of $1.27 million in the prior year quarter.
For the full year, the Santa Ana, California-based company reported net income of $4.29 million or $0.09 per share, compared to $10.01 million or $0.20 per share in the prior year.
Income from continuing operations was $4.15 million or $0.08 per share, down from $5.81 million or $0.11 per share a year ago. On a non-GAAP basis, the company reported earnings from continuing operations of $0.31 per share.
Analysts expected the company to earn $0.34 per share for the full year.
Net revenues for the year were $227.45 million, up 27.8% from $188.65 million last year. Analysts expected the company to report revenue of $226.96 million for the full year.
Looking ahead to the first quarter, the company raised its revenue estimates to a range of $58 million - $60 million from the previous range of $42 million - $50 million. On a non-GAAP basis, earnings are expected in the range of $0.10 - $0.12 per share. Analysts currently anticipate the company to earn $0.05 per share on revenue of $45.92 million for the first quarter.
STEC closed Thursday's trading at $7.33, up $1.13 or 18.23% on a volume of 630,052 shares on the Nasdaq.
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