AuthenTec Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

AuthenTec (NAS: AUTH) reported earnings on Aug. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 29 (Q2), AuthenTec beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share shrank.


Margins increased across the board.

Revenue details
AuthenTec reported revenue of $20.5 million. The five analysts polled by S&P Capital IQ anticipated revenue of $18.8 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $16.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.03. The five earnings estimates compiled by S&P Capital IQ forecast $0.01 per share. GAAP EPS were -$0.03 for Q2 against -$0.11 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.4%, 960 basis points better than the prior-year quarter. Operating margin was -5.0%, 2,300 basis points better than the prior-year quarter. Net margin was -6.0%, 2,390 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $20.3 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $77.4 million. The average EPS estimate is $0.05.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 179 members rating the stock outperform and four members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give AuthenTec a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AuthenTec is hold, with an average price target of $5.25.

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The article AuthenTec Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jaysonhad 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. The Motley Fool has no positions in the stocks mentioned above. 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.

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