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Interphase Corporation (NASDAQ: INPH), a diversified information and communications technology company, today reported financial results for its second quarter ended June 30, 2012.
Revenues for the second quarter of 2012 were $3.5 million, a decrease of $2.7 million when compared to revenues from the second quarter of 2011 of $6.2 million. Revenues in the quarter were primarily derived from telecommunications product revenues, which decreased to $2.6 million in the second quarter of 2012 compared to $5.3 million for the second quarter of 2011. Services revenues increased approximately 36% to $708,000 for the second quarter of 2012 compared to $519,000 for the second quarter of 2011. Gross margin was 45% for the second quarter of 2012 compared to 53% for the second quarter of 2011. The decrease in gross margin percentage was primarily due to decreased utilization of the company’s manufacturing facility partially offset by a shift in product mix toward higher margin products. The company reported a net loss of $1.1 million, or ($0.16) per share in the second quarter of 2012 compared to a net income of $317,000, or $0.04 per fully diluted share in the second quarter of 2011. Also contributing to the loss in the second quarter, the Company made significant investments in development, marketing and infrastructure associated with penveu™, to position this important product for a successful launch.
“Our major telecommunications equipment customers have been struggling in the global market and therefore our telecommunications product revenues are in decline from prior year levels,” said Gregory B. Kalush, CEO and President of Interphase. “We are actively working with these customers to support several new product launches that are currently scheduled for release at various times in the fourth quarter of 2012 and the first half of 2013. Additionally, we continue to make progress on our diversification efforts and were pleased to be awarded our first patent for penveu™ on July 10, 2012. Early market feedback on penveu has been very encouraging and we are working diligently to bring this product to market in the fourth quarter of 2012.”