STEC, maker of solid-state drives, posted Q3 revenue of $98.3 million, up 54.3% from a year ago, and ahead of the Street at $96.6 million. Non-GAAP EPS of 50 cents a share beat the Street by 3 cents.
But unfortunately for STEC bulls, the Street’s focus will be on the company’s comment that one of its customers who had signed $120 million supply agreement for shipments covering the 2009 second half “might carry inventory” of its Zeus SSDs at year end, which they will carry into 2010. STEC said it has begun a strategic sales and marketing program to promote integration of SSD’s into that customer’s systems, but that if the program is not successful, Q1 2010 orders from this customer would be negatively affected.
For Q4, the company expects revenue of $101 million to $103 million, with non-GAAP EPS of 51-53 cents; the Street has been expecting $106 million and 52 cents.
45 minutes into the after-hours session, STEC is now down $7.46, or 32.2%, to $15.69.
Is there not something fishy going on with STEC shares? A 32% decline on such excellent numbers, when the stock is already down from $40 about a month ago is just ridiculous. You can't help get the feeling that some influential short sellers and bears have decided that this stock is going down no matter what it does. Comments?
ReplyDeleteIt's the company's comments.....STEC may have been overvaluated
ReplyDeletecompany’s comment that one of its customers who had signed $120 million supply agreement for shipments covering the 2009 second half “might carry inventory” of its Zeus SSDs at year end, which they will carry into 2010."