Data warehouse appliances provider Netezza Corp. (NZ), Tuesday reported a sharp decline in profit for the third quarter of fiscal 2010, reflecting lower product sales and higher operating expenses.
The Marlborough, Massachusetts-based company's net income for the third quarter declined to $0.85 million or $0.01 per share from $3.46 million or $0.05 per share in the previous year. Results for the quarter include non-cash stock-based compensation of $2.52 million, amortization charges of $269 thousand and income tax effect of $666 thousand.
On an adjusted basis, net income declined to $2.97 million or $0.05 per share from $5.70 million or $0.09 per share in the previous year.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter declined to $47.73 million from $50.58 million last year. Analysts expected a revenue of $47.15 million for the quarter.
Product revenues were $33.34 million, down from $38.94 million a year ago. Services revenue rose to $14.39 million from $11.64 million in the previous year.
Gross margin was $31.86 million, compared to $31.25 million last year.
Total operating expenses increased to $30.72 million from $27.27 million a year earlier. Sales and marketing expenses increased to $16.78 million from $14.88 million, while research and development expenses were $10.07 million, up from $8.41 million last year.
For the nine-month period, net income declined to $1.34 million or $0.02 per share from $8.74 million or $0.14 per share in the same period of the previous year. Total revenue for the period declined slightly to $137.04 million from $137.19 million a year ago.
NZ is currently trading at $10.74, down 0.26 or 2.36%, on a volume of 349K shares on the NYSE. In after hours, the stock further declined 0.09 or 0.84%, trading at $10.65.
For comments and feedback: editorial@rttnews.com