Entorian Technologies Issues 3Q Financial Results

Entorian Technologies, a provider of rugged, mission-critical mobile and server computing solutions for use in harsh, demanding environments, announced financial results for the third quarter ended September 30.

In a release dated November 10, the company stated:

- Total revenue for the third quarter was $11.8 million, including $11.2 million of product revenue associated with the company's rugged technology solutions and $0.6 million of memory license revenue. This compares to total revenue of $7.7 million in the second quarter of 2009, which included $6.9 million of rugged technology product revenue and $0.8 million of memory license revenue.

"Our rugged computing solutions business increased during the quarter as our OEM customer's next-generation, fully rugged notebook gained additional traction in the marketplace," said Stephan Godevais, Entorian's president and chief executive officer. "Launched in the second quarter of 2009, this fully rugged notebook showcases our enhanced protection technologies against drops, rain, dust, dirt, spills and temperature extremes.

"More recently, we launched a second ruggedized platform with our OEM customer. This rugged convertible notebook provides critical features and ergonomic mobility in a cost-effective solution that is ideal for first responders and government agencies, as well as enterprise users in field service, field sales and industrial manufacturing."

- In accordance with GAAP, gross profit for the third quarter of 2009 was $1.3 million, or 11 percent of revenue, compared to $1.1 million, or 14 percent, in the previous quarter. On a non-GAAP basis, gross margin was 16 percent in the third quarter of 2009, compared to 22 percent in the previous quarter.

- On a GAAP basis, total operating expenses in the third quarter of 2009 were $4.4 million, compared to $4.9 million in the previous quarter. SG&A represented approximately 22 percent of net revenue, including stock-based compensation expense of $251,000, compared to 37 percent in the previous quarter. R&D was approximately 16 percent of revenue, compared to 27 percent in the previous quarter. On a non-GAAP basis, total operating expenses for the quarter were $4.1 million, compared to $4.7 million in the previous quarter.

- Third quarter GAAP net loss was $3.3 million, or ($0.84) per diluted share, compared to a net loss in the previous quarter of $3.7 million, or ($0.96) per diluted share.

- Excluding non-cash charges for stock-based compensation, amortization and impairment of acquisition intangibles, fixed assets and goodwill, the non-GAAP net loss for the third quarter was $2.3 million, or ($0.59) per diluted share, compared to the non-GAAP net loss of $2.9 million, or ($0.74) per diluted share, in the previous quarter. The per share loss amounts have been adjusted to reflect the impact of the company's 1-for-12 reverse stock split on October 30.

- Inventory as of September 30, was $7.6 million, compared to $4.8 million in the previous quarter. Capital expenditures were $300,000 and depreciation expense was $200,000.

- Cash, cash equivalents and investments on September 30, were $11.2 million, compared to $18.0 million on June 30. Accounts receivable was $16.6 million, compared to $11.5 million in the previous quarter.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

Related terms: acquisition, business, ceo, financial results, gaap, government, industrial, manufacturing, president, revenue, stock split, technology