New book by Larry Connors Click here Improve your trading - See how
In a release on May 12, the Company noted that total revenue for the quarter was $13.0 million, which exceeded the company's previously stated guidance range of $7.0 to $10.0 million. This compares to revenue of $19.9 million in the fourth quarter of 2008, and $8.6 million in the first quarter of 2008. Product revenue in the first quarter of 2009 was $12.9 million, compared to $19.9 million in the previous quarter and $7.2 million in the first quarter a year ago. Product revenue included $9.5 million associated with the company's rugged technology solutions business and $3.4 million from the company's memory solutions business. License revenue for the quarter was $96,000, compared to $28,000 in the previous quarter and $1.4 million in the first quarter of 2008.
"The first half of 2009 represents a transitional period as we continue to build on our foundation for growth as a rugged computing solutions provider," commented Stephan Godevais, Entorian's president and chief executive officer. "Our revenue in the first quarter was the result of stronger-than-anticipated sales of our fully rugged notebook. During the quarter, our leading OEM customer launched its next-generation, fully rugged notebook. It is based on our new, differentiated rugged computing technologies, which enhance protection from drops, rain, dust, dirt, spills and temperature extremes. The initial end customer response to the product has been strong," stated Godevais.
He further commented, "Also included in the first quarter revenue was $3.5 million from our memory solutions business, reflecting the final quarter in which we manufactured our stacked memory products. Beginning with the second quarter, we transferred manufacturing to our licensees, which will generate future royalties for us. As a result of these actions, we significantly reduced operating expenses and improved gross margins, contributing to improvements to our bottom line."
Gross profit for the first quarter 2009 was $2.8 million, or 22 percent of revenue, compared to 5 percent in the previous quarter. On a non-GAAP basis, gross margin was 27 percent in the first quarter of 2009, compared to 13 percent in the previous quarter.
In accordance with generally accepted accounting principles (GAAP), total operating expenses in the first quarter of 2009 were $7.7 million, compared to $14.0 million in the previous quarter. First quarter GAAP operating expenses included a restructuring charge of $2.3 million primarily associated with closing the company's manufacturing operations in Reynosa, Mexico and the associated headcount reductions. The fourth quarter of 2008 operating expenses included a restructuring charge of $2.7 million and a $4.1 million charge related to goodwill impairment. SG&A represented approximately 25 percent of net revenue, including stock-based compensation expense of $0.2 million, compared to 21 percent in the previous quarter. R&D was approximately 17 percent of revenue, compared to 15 percent in the previous quarter. On a non-GAAP basis, total operating expenses for the quarter were $7.4 million, compared to $9.1 million in the previous quarter.
First quarter GAAP net loss was $5.0 million, or ($0.11) per diluted share, compared to a net loss in the previous quarter of $13.1 million, or ($0.28) per diluted share.
Excluding non-cash charges for stock-based compensation, amortization and impairment of fixed assets, acquisition intangibles and goodwill, the non-GAAP net loss for the first quarter was $4.1 million, or ($0.09) per diluted share, compared to the non-GAAP net loss of $6.8 million, or ($0.15) per diluted share, in the previous quarter. A reconciliation of GAAP results to non-GAAP results has been provided in the financial statement tables following the text of this press release.
Cash, cash equivalents and investments on March 31, were $19.1 million, compared to $24.6 million on December 31, 2008. During the first quarter, the company repurchased approximately 40,000 shares of its common stock under its repurchase program at a cost of approximately $8,000. As of December 31, the company had approximately $6.8 million remaining under its stock repurchase plan.
Inventory as of March 31, was $1.9 million, compared to $5.0 million in the previous quarter. Accounts receivable was $10.7 million, compared to $5.3 million in the previous quarter. The increase in accounts receivable is primarily due to the timing of product deliveries and invoicing that occurred late in the quarter. Capital expenditures were $742,000 and depreciation expense was $940,000.
Business Outlook
"I am pleased with the progress we made during the quarter as part of our efforts to transition the company. I believe the launch of our OEM customer's next-generation product during the first quarter demonstrates the value of our differentiated technologies. When coupled with our reduction in operating expenses and improvements to gross margin during the period, we have better positioned the company to drive revenue growth as the overall macroeconomic environment begins to improve. Looking forward, our near-term visibility remains limited due to continued uncertainty in the economic environment and the timing of a recovery in our target markets. In addition, it is difficult to predict the rate of adoption of our OEM customer's newly launched fully rugged notebook. As a result, we remain focused on stringently managing our expenses," concluded Godevais.
Entorian expects second quarter 2009 revenue to range between $5 million and $8 million. The company expects capital spending and depreciation expense to be approximately $500,000 and $600,000, respectively.
Entorian Technologies is a provider of differentiated technologies and vertical solutions to OEMs.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
