Adesto Technologies Reports Second Quarter 2018 Financial Results

Adesto Technologies (NASDAQ:IOTS) announced financial results for its second quarter ended June 30, 2018.

The company, a leading provider of application-specific semiconductors for the IoT era reported revenue increase of 35.6 percent year-over-year to US$18.2 million.

As quoted in the press release:

Second Quarter and Recent Highlights:

• GAAP gross margin was 42.7%;
• GAAP operating expenses were $11.7 million and non-GAAP operating expenses were $8.3 million, both better than expectations;
• Adjusted EBITDA was a positive $0.1 million, compared to positive $0.1 million in the second quarter of 2017;
• Announced a definitive agreement to acquire Echelon Corporation; and
• Successfully completed public offering of common stock, raising $43.1 million in proceeds net of underwriters’ discount.

Commenting on the quarter, Narbeh Derhacobian, Adesto’s president and CEO, stated, “Revenue in the second quarter grew more than 35% year-over-year, representing the fifth consecutive quarter of above 30% growth. We also made solid progress integrating S3 Semiconductors (“S3semi”) during the quarter, with its results at the high-end of our expectations. We remain very excited about the market and content expansion opportunities we are able to pursue globally with the addition of S3semi’s broad analog, RF and mixed signal expertise.

“Also highlighting the quarter was the achievement of another record quarter of design wins for our memory products, further adding to the momentum we have gained over the past year. Contributing to this success was the continued execution on our strategy to expand our Tier-1 OEM customer base with standard serial flash products.  Although the resulting product mix impacted our gross margins for the quarter and can have a short-term effect on gross margins, we believe this strategy is beginning to produce its intended benefit in expanded opportunities for our higher value-added solutions at these customers, and is reflected in our third quarter guidance. Also mentioned in our second quarter preliminary results announcement, our newest DataFlash-L products for smart home applications ramped slower than anticipated in the quarter. This is a growing and healthy market opportunity for us as we saw the sampling activity more than double from 80 to over 170 unique opportunities in the last six months as compared to the second half of 2017. We continue to believe these products will gain increasing traction with customers later in the year.”

Click here for the full press release.