Inphi stock up despite reporting net loss for quarter
Inphi stock shot up more than 4 percent Aug. 8 after the semiconductor company reported a 39 percent increase in revenues but still posted a $15 million net loss.
Revenues grew to $84.4 million during the quarter ended June 30, compared to $60.5 million in the second quarter of 2016. Net income fell from nearly $1 million for the same period the prior year to a loss of $15 million this year.
The Westlake Village company attributed the increase in revenues to demand for its ColorZ product for data centers and others it brought on as part of its acquisition of ClariPhy in December. But that was balanced by an almost 50 percent increase in operating expenses, including $12.1 million in research and development costs.
“We executed in Q2 according to plan, with ColorZ continuing its ramp, crossing 10,000 cumulative unit shipments with excellent quality in live field operation,” President and CEO Ford Tamer said in an earnings release Aug. 7. “We need to continue to be patient regarding a full demand resumption in China metro and long haul.”
The company expects similar revenues in the third quarter, but an increase in gross margin to around 60 percent, for a net loss between $14.9 million and $17.6 million, or 35-42 cents per share.
Shares had increased $1.56, or 4.4 percent, to $36.99 as of 11:10 a.m. Aug. 8.