Interphase Corporation (NASDAQ: INPH), a leading global provider of solutions for converged communications networks, today reported financial results for its second quarter ended June 30, 2011.
Revenues for the second quarter of 2011 increased approximately 60% to $6.2 million when compared to $3.9 million for the second quarter of 2010. Revenues in the quarter were primarily derived from telecommunications product revenues, which increased to $5.3 million in the second quarter of 2011 compared to $3.2 million for the second quarter of 2010. Services revenues increased to $497,000 compared to $264,000 on a year to year basis, and enterprise product revenues increased slightly to $361,000 for the second quarter of 2011 compared to $346,000 for the second quarter of 2010. Gross margin for the second quarter of 2011 was 53% compared to 46% for the second quarter of 2010. The increase in gross margin percentage was primarily due to increased utilization of our manufacturing facility partially offset by a shift in product mix toward lower margin products. The company reported a net income of $317,000, or $0.04 per fully diluted share in the second quarter of 2011 compared to a net loss of $2.2 million, or ($0.32) per share in the second quarter of 2010. On June 30, 2011, the company’s working capital position was $14.5 million, including cash and marketable securities of $11.2 million.
“We are pleased with our second quarter results as we were able to achieve revenue growth of 60% year over year,” said Gregory B. Kalush, CEO and President of Interphase. “Revenues were poised to continue to grow sequentially as well; however, we experienced a few unanticipated parts shortages that impacted sequential revenue growth for the quarter. Recovery plans within the supply chain have been put in place and we believe that these issues have been mitigated going forward. Despite this challenge, we were able to improve our net income position by 37% over the first quarter of 2011.”