GAAP net income for the third quarter was $655,000, or $0.02 cents per share, compared to a net loss of $7.8 million, or $0.19 cents per share, in the same period last year. Non-GAAP net income for the third quarter was $1.8 million, or $0.04 cents per share, compared to a non-GAAP net loss of $4.7 million, or $0.11 cents per share for the third quarter of 2010. Stock-based compensation expense was lower than expected this quarter due primarily to the reversal of approximately $976,000 of expense due to the forfeiture of awards to our former Executive Chairman, Ken Oshman, who regrettably passed away in August. Excluding expense reversal, we would have had a GAAP loss of $0.01 per share for the quarter.Business Outlook Echelon offers the following guidance for the fourth quarter of 2011:
- Total revenues are expected to be $39 million to $41 million, with our Utility revenues accounting for about 62%, our Commercial revenues 33%, and the remainder from Enel.
- Non-GAAP gross margin is expected to be in the range of 40%.
- Stock-based compensation expense is expected to be approximately $3.2 million.
- Non-GAAP loss per share amounts are expected to range from $0.04 to $0.07, based on a fully diluted weighted average shares outstanding of 42.5 million.
- GAAP loss per share is expected to be between $0.12 and $0.14 for the quarter.