Interphase Corporation (NASDAQ: INPH), a diversified information and communications technology company, today reported financial results for its full year and fourth quarter ended December 31, 2011.
For the full year of 2011, revenues increased approximately 21% to $22.0 million, compared to $18.2 million for the full year of 2010. Gross margin decreased to 48% for the year ended December 31, 2011, compared to 50% for the year ended December 31, 2010. Net loss for 2011 was $505,000, or ($0.07) per share for 2011, compared to a net loss of $8.4 million, or ($1.23) per share for 2010. On December 31, 2011, the company’s working capital position was $14.0 million, including cash and marketable securities of $11.8 million.
Revenues for the fourth quarter of 2011 decreased approximately 38% to $3.6 million when compared to $5.8 million for the fourth quarter of 2010. Revenues in the quarter were primarily derived from telecommunications and enterprise product revenues, which decreased to $2.8 million in the fourth quarter of 2011 compared to $5.5 million for the fourth quarter of 2010. Services revenues increased approximately 180% to $754,000 compared to $269,000 on a year to year basis. Gross margin for the fourth quarter of 2011 was 40% compared to 55% for the fourth quarter of 2010. The decrease in gross margin percentage was primarily due to a shift in product mix toward lower margin products and services and decreased utilization of the company’s manufacturing facility. The company reported a net loss of $1.1 million, or ($0.16) per share in the fourth quarter of 2011 compared to a net income of $447,000, or $0.06 per fully diluted share in the fourth quarter of 2010.
“The fourth quarter was a particularly difficult one, due in large part to a slowdown in shipments of telecommunications equipment,” said Gregory B. Kalush, CEO and President of Interphase. “These results further demonstrate the importance of our strategy in building a more diversified company that is less dependent upon a single market and a small group of customers for our success. Meaningful progress continues to be made in this effort. An important example of this progress is that we expect to announce our new embedded computer vision product in the first half of the year.”