Stec: Fiscal 4Q12 Financial Results
Revenue down 40% for the quarter, -34% to -40% expected for the next one
This is a Press Release edited by StorageNewsletter.com on March 15, 2013 at 2:55 pm| (in US$ million) | 4Q11 | 4Q12 | FY11 | FY12 |
| Revenues | 58.1 | 35.1 | 308.1 | 168.3 |
| Growth | -40% | -45% | ||
| Net income (loss) | (3.6) | (23.2) | 25.1 | (103.2) |
STEC, Inc. announced its financial results for the fourth quarter and full-year ended December 31, 2012.
Revenue for the fourth quarter of 2012 was $35.1 million, a decrease of 39.6% from $58.1 million for the fourth quarter of 2011 and a decrease of 16.6% from $42.1 million for the third quarter of 2012.
GAAP gross profit margin was 32.2% for the fourth quarter of 2012, compared to 41.1% for the fourth quarter of 2011 and 37.0% for the third quarter of 2012. GAAP diluted loss per share was $0.50 for the fourth quarter of 2012, compared to $0.08 for the fourth quarter of 2011 and $0.42 for the third quarter of 2012.
Non-GAAP gross profit margin was 32.8% for the fourth quarter of 2012, compared to 41.5% for the fourth quarter of 2011 and 37.5% for the third quarter of 2012. Non-GAAP diluted loss per share was $0.35 for the fourth quarter of 2012, compared to $0.02 for the fourth quarter of 2011 and $0.24 for the third quarter of 2012.
Revenue for full-year 2012 was $168.3 million, a decrease of 45.4% from $308.1 million for full-year 2011. GAAP gross profit margin was 35.6% for full-year 2012, compared to 43.6% for full-year 2011. GAAP full-year 2012 diluted loss per share was $2.22, compared to full-year 2011 diluted earnings per share of $0.50. Non-GAAP gross profit margin was 36.1% for full-year 2012, compared to 43.8% for full-year 2011. Non-GAAP diluted loss per share was $1.03 for full-year 2012, compared to non-GAAP diluted earnings per share of $0.70 for full-year 2011.
Business Outlook
"Although we experienced another very challenging quarter, I am very pleased with the headway that we made towards the successful implementation of our business strategy that is focused on diversifying our customer base," said Mark Moshayedi, STEC’s CEO and president. "The strategic goal is to attain a solid mix of channel distributors and enterprise customers along with our OEM customers.
"While the transition from being an OEM-driven company is taking place over time, evidence of our progress includes achieving our first greater-than-10%-of-revenue non-OEM customer, in the second half of 2012. In 2012 and continuing in 2013, we’ve been executing on our new strategic marketing initiatives and have recruited seasoned personnel with significant Enterprise expertise. I believe that we are now well-positioned to target our key vertical markets. As an organization, we are evolving into a storage systems and solutions provider and away from simply providing components.
"These transitions are never easy, but we are confident in our people and core technologies. The combination of storage, SSD, and applications expertise that we are bringing together will not only distinguish ourselves in the marketplace, but we expect will also begin to pay off as we continue to execute our strategy in 2013 and beyond."
Current expectation for first quarter of 2013 is as follows:
- Revenue to range from $21 million to $23 million.
- Non-GAAP diluted loss per share to range from $0.40 to $0.42.
Comments
Abstract of the earnings call transcript:
Mark Moshayedi, president and CEO:
"(...) during the second half of 2012 one of our non-OEM customer generated over 10% of our revenue.
"Also noteworthy is that the revenue from non-OEM accounts were $36 million in 2012, up from $19 million in 2011 and approximately 90% growth rate.
"As a percentage of total revenue, non-OEM sales increased to approximately 22% from approximately 6% in 2011. These are important points because they indicative that our transition is underway and we are fully expecting the shift towards the healthy balance of non-OEM and OEM revenue will continue for the foreseeable future."
Raymond Cook, CFO:
"Our flash-related products accounted for $33.8 million or approximately 96% of total revenue and DRAM-related products accounted for $1.2 million or 3% of total revenue. The flash-related revenue was comprised of ZeusIOPS of $25.3 million, MACH products of $5.3 million and embedded SSDs and other flash products of $3.1 million.
"Current liabilities decreased $6.2 million for the quarter to $58.4 million, due primarily to the timing of accounts payable payments to suppliers and we had no long-term debt outstanding as of the December 31, 2012. Net cash used in operating activities for the three months ended December 31, 2012, was $21.3 million."
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