posted fourth-quarter earnings that doubled Wall Street estimates, but the shares were in free fall because of a lowered first-quarter outlook.
-listed shares were recently down 25% to $3.29.
The company cited a 12-percentage-point increase in gross margin for the better-than-expected fourth-quarter result. Margins improved because of lower product costs associated with a video server, better margins in the Real-Time division and an increase in demand for the higher margin PowerMaxion hardware and software.
In its fourth quarter, the computer software and server company earned $5 million, or 8 cents a share, compared with last year's loss of $800,000, or a penny a share. Analysts surveyed by First Call/Thomson Financial expected earnings of 4 cents a share.
The company posted revenue of $27.8 million for the quarter compared with $19.9 million a year ago. Quarterly revenue from its video-on-demand segment rose 182% to $17.4 million vs. $6.2 million a year ago.
But looking ahead, the company hopes to earn 1 cent or 2 cents a share for its first quarter, below the First Call consensus of 3 cents a share.