As Inrange Technologies Corp. moves to exit the telecommunications business and focus on storage networking, the company today reported second-quarter earnings that were in range with analysts expectations, but missed the consensus by a penny.
The developer of networking and switching equipment had pro forma earnings of $3.1 million, or 4 cents a share, versus the consensus estimate of $4.2 million, or 5 cents a share. Revenues were $69 million.
Earnings slid 32 percent from the same quarter a year ago, when Inrange reported $4.5 million, or 6 cents a share. But revenues grew at a healthy 33 percent over last years $52 million. Accounting for much of the discrepancy was a slide in gross profit margins from 48 percent to 44 percent and a 58 percent rise in selling and administrative expenses.
Including the effects of restructuring, amortizing goodwill, and other charges related to exiting the telecommunications business, Inrange suffered a net loss of $5.4 million, or minus 6 cents a share, vs. $4.5 million earnings, or 6 cents a share, a year ago.
Company officials predict third-quarter earnings of 5 cents to 6 cents a share on $74 million to $75 million revenues with gross margins similar to the second quarter. For the year, they expect $300 million total revenues, including $125 million from open storage products and services.