Enzymotec (NASDAQ: ENZY) reported Q2 EPS of $0.03, $0.02 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $13 million versus the consensus estimate of $12.78 million.

Second Quarter 2017 Financial Highlights

• Net revenues increased 10.9% and 8.5% to $13.0 million, compared to the second quarter of 2016 and the first quarter of 2017, respectively.
• Net revenues (utilizing the proportionate consolidation method that is used for segment reporting) increased 30.9% and 14.7% to $19.6 million, compared to the second quarter of 2016 and the first quarter of 2017, respectively.
• Gross margin decreased to 50.2%, compared to 70.0% and 70.2% in the second quarter of 2016 and the first quarter of 2017, respectively, primarily due to an inventory write-off of $3.3 million.
• Selling and marketing expenses remained stable at $4.9 million compared to the second quarter of 2016 and increased 6.0% compared to the first quarter of 2017.
• Adjusted EBITDA* amounted to $(0.8) million, compared to $1.6 million in the second quarter of 2016 and $1.5 million in the first quarter of 2017. Adjusted EBITDA* for this quarter includes a $3.3 million inventory write-off.
• Net loss amounted to $(2.3) million, or $(0.10) per diluted share, compared to net income of $0.2 million, or $0.01 per diluted share in the second quarter of 2016 and net income of $25,000, or $0.00 per diluted share in the first quarter of 2017. Net income for this quarter includes a $3.3 million inventory write-off.
• Non-GAAP net loss* amounted to $(1.5) million, or $(0.06) per diluted share, compared to non-GAAP net income* of $0.8 million, or $0.04 per diluted share in the second quarter of 2016 and non-GAAP net income* of $0.8 million, or $0.03 per diluted share in the first quarter of 2017. Non-GAAP net income* for this quarter includes a $3.3 million inventory write-off.

For earnings history and earnings-related data on Enzymotec (ENZY) click here.