The 10-second takeaway
For the quarter ended March 31 (Q1), STEC met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
STEC chalked up revenue of $50.4 million. The 12 analysts polled by S&P Capital IQ expected sales of $50.0 million on the same basis. GAAP reported sales were 47% lower than the prior-year quarter's $94.9 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 -$0.17. The 11 earnings estimates compiled by S&P Capital IQ predicted -$0.15 per share. GAAP EPS were -$0.23 for Q1 versus $0.27 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 35.9%, 650 basis points worse than the prior-year quarter. Operating margin was -27.5%, 4,350 basis points worse than the prior-year quarter. Net margin was -21.2%, 3,610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $44.7 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $217.9 million. The average EPS estimate is -$0.26.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STEC is hold, with an average price target of $9.20.
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