The 10-second takeaway
For the quarter ended Sep. 30 (Q3), STEC beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
STEC logged revenue of $42.1 million. The nine analysts polled by S&P Capital IQ foresaw a top line of $40.8 million on the same basis. GAAP reported sales were 42% lower than the prior-year quarter's $72.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.24. The eight earnings estimates compiled by S&P Capital IQ anticipated -$0.28 per share. GAAP EPS were -$0.42 for Q3 versus $0.09 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.0%, 850 basis points worse than the prior-year quarter. Operating margin was -50.9%, 5,820 basis points worse than the prior-year quarter. Net margin was -47.0%, 5,370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $45.3 million. On the bottom line, the average EPS estimate is -$0.22.
Next year's average estimate for revenue is $177.2 million. The average EPS estimate is -$0.95.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STEC is hold, with an average price target of $7.40.
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