Adesto Technologies Corporation (IOTS) Reports In-Line Q1 EPS; Q2 Revs Guided Below the Street

Adesto Technologies Corporation (NASDAQ: IOTS) reported Q1 EPS of ($0.16), in-line with the analyst estimate of ($0.16). Revenue for the quarter came in at $10.2 million versus the consensus estimate of $10.2 million.

Commenting on the quarter, Narbeh Derhacobian, Adesto’s president and CEO, stated, “As released in our preliminary results announcement, first quarter revenue was below expectations due to a decrease in shipment volumes at three large consumer customers. Two of these customers experienced inventory corrections, while a third customer delayed a product introduction. Demand across our industrial and communication customers performed as expected in the quarter, reflecting ongoing shipment volumes and new design win ramps. As a result of the shift in revenue mix, first quarter gross margin increased 350 basis points sequentially to 49.1%, above our guidance of 43% to 45%.

“As we look to the second quarter, we continue to see broader macroeconomic trends and inventory adjustments affecting order volumes at multiple consumer customers, contributing to our expectation for flat sequential revenue. Despite this slowdown, we continue to gain strong design win momentum across our end markets while notably increasing the average dollar value per win, which we expect will drive a return to growth in the second half. Additionally, we are successfully executing on our product roadmap, including cost-down versions of existing products, sampling availability of our next-generation ultra-low power Moneta CBRAM solution and the planned introduction of our EcoXip family in the second half of 2016, which we believe further broadens our growth opportunities.”

“In summary, although first half revenue will be impacted by the overall softness in consumer demand, we are delivering to plan on design win growth, new product introductions and gross margin expansion, which we believe collectively positions us well for growth in 2016 as customers return to normal volume expectations and additional designs ramp into production.”

GUIDANCE:

Adesto Technologies Corporation sees Q2 2016 revenue of $10.1-10.3 million, versus the consensus of $11.45 million.

For earnings history and earnings-related data on Adesto Technologies Corporation (IOTS) click here.

You May Also Be Interested In

• Lockheed Martin (LMT) Tops Q1 EPS by 53c, Beats on Revenue; Offers FY24 Guidance
• GE Aerospace (GE) beats on top and bottom lines in Q1, hikes profit outlook
• Option Care Health (OPCH) Tops Q1 EPS by 3c, provides guidance