sTec: Fiscal 2Q13 Financial Results

(in US$ million)	2Q12	2Q13	6 mo. 12	6 mo. 13
Revenues	40.7	23.5	91.1	45.5
*Growth*		-42%		*-50%*
Net income (loss)	(49.6)	(30.4)	(60.3)	(55.9)

sTec, Inc. announced financial results for the second quarter ended June 30, 2013.

Revenue for the second quarter of 2013 was $23.5 million, a decrease of 42.3% from $40.7 million for the second quarter of 2012 and an increase of 6.8% from $22.0 million for the first quarter of 2013.

GAAP gross profit margin was 28.0% for the second quarter of 2013, compared to 36.6% for the second quarter of 2012 and 26.8% for the first quarter of 2013. GAAP diluted loss per share was $0.65 for the second quarter of 2013, compared to $1.07 for the second quarter of 2012 and $0.54 for the first quarter of 2013.

Non-GAAP gross profit margin was 29.0% for the second quarter of 2013, compared to 37.2% for the second quarter of 2012 and 27.7% for the first quarter of 2013. Non-GAAP diluted loss per share was $0.43 for the second quarter of 2013, compared to $0.27 for the second quarter of 2012 and $0.41 for the first quarter of 2013.

Comments

Abstracts from quarterly report on Form 10-Q

Flash-based products and technologies flash-based product revenues were $21.4 million and $39.7 million in the second quarter of 2013 and 2012, respectively. The decrease in flash-based product revenues in the second quarter of 2013 compared to the same period in 2012 was due primarily to a $17.0 million decrease in flash-based product sales to two customers. Sales of flash-based products represented 91% and 97% of our total revenues in the second quarter of 2013 and 2012, respectively.
Historically, a limited number of customers has accounted for a significant percentage of our revenues. Our ten largest customers accounted for an aggregate of 78% of our revenues during the second quarter of 2013, compared to 85% of our revenues during the second quarter of 2012.
Our revenues decreased 50% from $91.1 million in the first six months of 2012 to $45.5 million in the first six months of 2013 due primarily to a $46.2 million, or 52%, decrease in flash-based product sales, which primarily is a result of a delay in the introduction of our next-generation products and increased competition. Within flash-based product sales, shipments of our ZeusIOPS SSDs into the enterprise market decreased 61% from $72.5 million in the first six months of 2012 to $28.0 million in the first six months of 2013.
As of June 30, 2013, of the $116.3 million of aggregate cash and cash equivalents held by us, the amount of cash and cash equivalents held by our foreign subsidiaries was $61.4 million.