Adesto Technologies Announces Preliminary Second Quarter 2018 Financial Results

Adesto Technologies (NASDAQ:IOTS) announced premliminary results for the three months ended June 30, 2018 with the company expecting revenue for second quarter to be approximately $18.1 million to $18.3 million.

Adesto Technologies, a leading provider of innovative application specific semiconductors for IoT era expects its gross margin to be 42 percent to 44 percent.

As quoted in the press release:

The company expects gross margin to be 42% to 44%, below the company’s prior expectations of 46% to 48%, primarily driven by product mix during the quarter. Additionally, the company expects GAAP operating expenses for the second quarter to be in the range of $11.3 million to $11.5 million, compared to the company’s prior expectations of $9.1 million to $9.7 million. On a non-GAAP basis, Adesto expects operating expenses for the second quarter to be approximately $8.3 million to $8.5 million, also within the company’s prior expectations of $8.2 million and $8.8 million. Non-GAAP measures exclude estimates for transaction related expenses, stock-based compensation expense and amortization of acquisition-related intangible assets. For the second quarter, non-GAAP total operating expenses differs from GAAP total operating expenses because it excludes stock-based compensation expense of approximately $0.6 to $0.7 million, amortization of acquisition-related intangible assets of approximately $0.3 million and transaction-related expenses of approximately $2.0 million.

“During the quarter, we continued to make progress and penetrate Tier 1 OEM customers with sales of our standard flash products. As we gain more traction in these accounts, we believe our opportunity pipeline is also expanding for Adesto’s value-added products,” said Narbeh Derhacobian, Adesto’s President and CEO.  ”We experienced a slower than expected ramp of DataFlash-L products targeted at smart home application markets in the quarter, which reflected the timing of ramps across the broader end-market as opposed to any customer specific issues; together with the growing Tier-1 revenue, we experienced temporarily less-favorable product mix and gross margin in the second quarter. Regarding our S3 Semiconductors acquisition, we are executing well on the initial integration, and revenue from the ASIC group is expected to come in at the high-end of our projections.”

Click here for the full text release.