Lattice Incorporated Announces Earnings Results for the Third Quarter of 2014; Provides Earnings Guidance for the Fourth Quarter and Full Year of 2014
November 14, 2014 at 06:00 pm
Lattice Incorporated announced earnings results for the third quarter of 2014. For the quarter, the company reported that its total revenues decreased 7% from prior year to $2 million from $2.2 million. It had an adjusted operating loss of $211,000, which compares to income of $203,000 in the prior year quarter. Adjusted operating loss adds back to a reported operating loss of $492,000. Factors contributing to the adjusted operating loss included the timing of revenue recognition on technology projects; an increase in SG&A cost, which included nonrecurring cash-based expenses of approximately $100,000; and a decline in gross profit contribution from the wholesale expirations. On a pro forma non-GAAP basis, the company's adjusted operating loss would pro forma to approximately $100,000.
For the fourth quarter, the deferral of software revenue combined with Fourth Quarter technology shift expected to result in a positive adjusted operating result.
For the year 2014, the company expects to track to prior guidance of a blended gross margin in the high 30% to low 40% range.