Sycamore Networks Misses Where It Counts
Sycamore Networks (NAS: SCMR) reported earnings on May 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q3), Sycamore Networks met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP loss per share expanded.
Margins dropped across the board.
Sycamore Networks logged revenue of $11.9 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $12.0 million on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $11.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.14. The two earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.18 for Q3 versus -$0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.2%, 470 basis points worse than the prior-year quarter. Operating margin was -44.0%, 640 basis points worse than the prior-year quarter. Net margin was -42.7%, 780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $12.9 million.
Next year's average estimate for revenue is $52.2 million. The average EPS estimate is -$0.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 118 members out of 135 rating the stock outperform, and 17 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Sycamore Networks a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sycamore Networks is hold, with an average price target of $37.00.
Over the decades, small-cap stocks, like Sycamore Networks have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Sycamore Networks to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.