Vitesse releases Q3 results

- Delivered operating income: $2.1 million GAAP and $3.3 million non-GAAP; - Reached net income: $4.7 million GAAP and $0.1 million non-GAAP; “Our vision and operational management continue to deliver, resulting in both operating and net income profitability this quarter,” said Chris Gardner, CEO of Vitesse. “Vitesse’s strategy to leverage our disruptive technology to gain share in the high-growth Carrier and Enterprise networking markets is also working"” “While market challenges persist, we remain confident that our product development investments and solid execution will drive our revenue growth. Near-term, we see this trend with core revenue growing at 11% sequentially this quarter. Looking out, revenues from our new products will double from 2012 to 2013 and double again in 2014. In fact, the design wins expected to drive this revenue growth in 2013 are currently in or moving to production.” For the fourth quarter of fiscal year 2012, ending September 30, 2012, Vitesse expects revenues to be in the range of $28.0 million to $31.5 million and product margins are expected to be between 55% and 57%. Operating expenses are expected to be between $18.0 million and $19.0 million. Third Quarter Fiscal Year 2012 Financial Results Summary - Total net revenues were $30.3 million, compared to $29.7 million in the second quarter of fiscal year 2012 and $36.0 million in the third quarter of fiscal year 2011. - Product revenues were $25.7 million compared to $27.2 million in the second quarter of fiscal year 2012 and $31.9 million in the third quarter of fiscal year 2011. The product lines contributed the following as a percent of product revenue as compared to the second quarter of fiscal year 2012: - Carrier networking products: 45.1% versus 35.3% - Enterprise networking products: 52.6% versus 48.3% - Core Carrier and Enterprise networking products: 97.7% versus 83.6% -Non-core products: 2.3% versus 16.4% -Operating expenses decreased to $16.9 million from $18.0 million in the second quarter of fiscal year 2012 and $22.2 million in the third quarter of fiscal year 2011. - Operating income was $2.1 million up from $1.1 million in the second quarter of fiscal year 2012 and $326,000 in the third quarter of fiscal year 2011. - Non-GAAP operating income was $3.3 million up from $2.3 million in the second quarter of fiscal year 2012 and $1.5 million in the third quarter of fiscal year 2011. - Net income, which included a $5.8 million gain on the embedded derivative, was $4.7 million, or $0.18 per basic and $0.16 per fully diluted share. This compares to a net loss, which included a $5.3 million loss on the embedded derivative, of $6.2 million, or $0.25 per basic and fully diluted share, in the second quarter of fiscal year 2012; and net income of $6.6 million, which included an $8.0 million gain on the embedded derivative, or $0.26 per basic share and $0.21 per fully diluted share, in the third quarter of fiscal year 2011.