SAN DIEGO -- Overland Storage, Inc. (Nasdaq: OVRL) today reported fourth quarter and full-year results for its fiscal year ended June 30, 2008.
Net revenue for the fiscal 2008 fourth quarter was $28.9 million, compared with $34.1 million for the same period a year ago. The company reported a net loss of $8.6 million, or $0.67 per share, for the fiscal 2008 fourth quarter compared with a net loss of $6.0 million, or $0.47 per share, for the same period a year earlier.
For the twelve months ended June 30, 2008, the company reported net revenue of $127.7 million compared with $160.4 million for the twelve-month period in the prior fiscal year. The net loss for the 2008 fiscal year was $24.6 million, or $1.93 per share, compared with a net loss of $44.1 million, or $3.45 per share in fiscal 2007. The 2007 twelve month period net loss included an $8.4 million, or $0.66 per share, charge related to the impairment of acquired technology.
The company noted that net revenue for the fiscal 2008 fourth quarter decreased 15.2 percent from the fiscal 2007 fourth quarter and 9.0 percent on a sequential basis from the fiscal 2008 third quarter due to lower sales to OEM customers. Specifically, sales to the companys largest OEM customer were down 39.1 percent compared with the fiscal 2007 fourth quarter, continuing to reflect the customers previously announced transition to a new product from an alternate supplier. On a sequential basis, sales to this customer declined 29.0 percent from the fiscal 2008 third quarter, primarily due to a large spare-parts shipment to the customer in the third quarter that was not repeated in the fourth quarter. Total branded revenue in the fiscal 2008 fourth quarter increased 3.5 percent from the fiscal 2007 fourth quarter and 3.7 percent on a sequential basis from the fiscal 2008 third quarter.
Gross profit in the fiscal 2008 fourth quarter of $6.1 million was essentially unchanged from the fiscal 2007 fourth quarter, despite declining revenue. The gross profit margin of 21.1 percent in the fiscal 2008 fourth quarter improved over the fiscal 2007 fourth quarter margin of 18.1 percent principally as a result of the elimination in the prior year of charges associated with the companys terminated outsourced manufacturing arrangement. On a sequential basis, gross profit of $6.1 million in the fiscal 2008 fourth quarter decreased 20.7 percent from $7.7 million in the fiscal 2008 third quarter due to lower revenue and increased manufacturing costs. The gross profit margin of 21.1 percent in the fiscal 2008 fourth quarter declined on a sequential basis from the 24.2 percent margin in the fiscal 2008 third quarter due to a relatively lower mix of OEM spare revenue and increased manufacturing costs.
Operating expense of $13.7 million in the fiscal 2008 fourth quarter increased 14.1 percent from $12.0 million in the fiscal 2007 fourth quarter and 10.6 percent sequentially from $12.4 million in the fiscal 2008 third quarter. The cost increases reflect the companys expanded sales and support organization, as well as enhanced marketing and channel programs.
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