The 10-second takeaway
For the quarter ended June 30 (Q2), STEC met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
STEC chalked up revenue of $40.7 million. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $41.0 million on the same basis. GAAP reported sales were 51% lower than the prior-year quarter's $82.5 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 -$0.27. The 11 earnings estimates compiled by S&P Capital IQ averaged -$0.26 per share. GAAP EPS were -$1.07 for Q2 versus $0.18 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 36.6%, 810 basis points worse than the prior-year quarter. Operating margin was -56.0%, 6,800 basis points worse than the prior-year quarter. Net margin was -121.8%, 13,360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $48.1 million. On the bottom line, the average EPS estimate is -$0.19.
Next year's average estimate for revenue is $197.1 million. The average EPS estimate is -$0.73.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STEC is hold, with an average price target of $7.51.
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