Adesto Technologies Reports Fourth Quarter and Full Year 2017 Financial Results

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SANTA CLARA, Calif., Feb. 13, 2018 (GLOBE NEWSWIRE) -- Adesto Technologies Corporation (NASDAQ:IOTS), a leading provider of application-specific, ultra-low power and smart non-volatile memory products, today announced financial results for its fourth quarter and year ended December 31, 2017.

Commenting on the quarter, Narbeh Derhacobian, Adesto’s president and CEO, stated, “Revenue in the fourth quarter was at the high-end of our guidance range with operating expenses below the low-end of the range, contributing to our achievement of non-GAAP profitability, positive adjusted EBITDA and operating cash flow for the quarter. These results conclude a pivotal year for Adesto as we gained significant momentum ramping production of past design wins, resulting in three consecutive quarters of revenue growing by over 30% year-over-year and 27.6% for the full year.

“We are equally excited about our growth prospects in 2018 and beyond as we layered on a record number of design wins this past year, which should add to our current momentum.    In fact, the annual revenue run rate potential of our secured design wins for 2017 increased by over 85% from 2016 and four times over that of 2015.  We believe this is a clear indication that the growth we experienced in 2017 will carry forward into 2018 and beyond. We are seeing a number of new IoT and embedded applications coming to market that are benefitting from our low-power smart memory devices, including voice-activated home appliances, touch-sensors, asset trackers, smart lighting as well as health monitors.

“Finally, we significantly improved our balance sheet and financial position during the year, ending with more than $30 million in cash and giving us the capital and resources necessary to grow our existing business.  With operating expenses well under control and gross margins remaining within our targeted range, we are well positioned to deliver improving profits and cash flow. We are starting out the year with expectations to achieve our fourth consecutive quarter of revenue increasing 30% year-over-year and strong growth anticipated throughout the year as we expect to reach GAAP profitability in 2018.”

Gross margin in the fourth quarter of 2017 was 47.9%, compared to 50.6% in the fourth quarter of 2016 and 49.0% in the third quarter of 2017. Gross margin remains within the Company’s targeted range.  Gross margin for the full year 2017 was up 40 basis points to 49.0% from the prior year.

GAAP operating expenses in the fourth quarter of 2017 were $7.7 million, compared to $7.8 million in the prior year quarter and $8.3 million last quarter. On a non-GAAP basis, operating expenses in the fourth quarter were $6.8 million, compared to $6.7 million in the fourth quarter of 2016 and $6.9 million in the prior quarter.  For the full year 2017, GAAP operating expenses were $32.3 million, compared to $31.7 million in 2016 and non-GAAP operating expenses were $27.7 million, compared to $29.1 million in the prior year.

GAAP net loss in the fourth quarter of 2017 was $165,000, or ($0.01) per share, compared to a net loss of $1.7 million, or ($0.11) per share, in the fourth quarter of 2016 and a net loss of $1.0 million, or ($0.05) per share, in the previous quarter.  The full year 2017 net loss was $5.7 million or ($0.31) per share, compared to a loss of $11.6 million, or ($0.77) per share in 2016.

On a non-GAAP basis, net income in the fourth quarter of 2017 was $0.8 million, or $0.03 per diluted share, compared to a net loss of $0.6 million, or ($0.04) per share, in the fourth quarter of 2016 and net income of $0.4 million, or $0.02 per diluted share, last quarter.  For the full year 2017, non-GAAP net loss declined to $1.0 million, or ($0.05) per share, from $9.0 million, or ($0.60) per share, in 2016.

Adjusted EBITDA for the fourth quarter of 2017 was a positive $1.4 million, compared to a loss of $0.1 million in the fourth quarter of 2016 and a positive $0.9 million in the previous quarter. For the full year 2017, adjusted EBITDA was a positive $1.3 million, compared to a loss of $6.7 million in 2016.

A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.

Cash and cash equivalents as of December 31, 2017 totaled $30.1 million, compared to $19.7 million at the end of 2016.

A telephone replay of the conference call will be available approximately two hours after the conference call until Tuesday, February 20, 2018 at midnight Pacific Time. The replay dial-in number is 1-855-859-2056. International callers should dial +1-404-537-3406. The pass code is 6459898.

Our non-GAAP Financial Measures are described as follows:

For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliation of GAAP to Non-GAAP Financial Information.”

For a detailed discussion of these and other risk factors, please refer to our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017, filed with the SEC on November 13, 2017, which are available on our investor relations Web site (ir.adestotech.com) and on the SEC’s Web site (www.sec.gov).

All information provided in this release and in the attachments is as of February 13, 2018, and stockholders of Adesto are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Adesto does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this February 13, 2018 press release, or to reflect the occurrence of unanticipated events.

 

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Globe Newswire: 21:05 GMT Tuesday 13th February 2018

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