Efficient Networks posts second quarter loss
Shares in the broadband access equipment provider, which warned of a revenue shortfall earlier this month, gained more 3 percent, up 0.45 to 14.89, in pre-session trading on the Island ECN electronic trading network. The stock had traded at a 52-week high of 186.81 before falling to a low of 7.75.
For the quarter ending Dec. 31, the company lost $7.3 million, or 12 cents a share, excluding amortization of deferred stock option compensation and goodwill charges. First Call's reduced consensus number had been for a loss of 20 cents a share.
Revenues for the period were $102.5 million, lower than the Street's target of $120.7 million.
In the year ago quarter, the company lost 14 cents a share on revenues of $29.6 million.
According to Efficient Networks' CEO Mark Floyd, despite the revenue shortfall, demand for digital subscriber line (DSL) products remains strong. Floyd added that the company's balance sheet is strong with $436 million in cash and short-term investments.
Gross margins in the second quarter were 33.1 percent, compared to 32.7 percent for the previous quarter.
Including charges, the company lost $56.3 million, 96 cents a share, compared to the $45.2 million, or 77 cents a share, loss seen in the previous quarter.