Intellon Corp. flat after Q4 loss
Shares of Intellon Corp. (Nasdaq: ITLN) are flat following news that the maker of integrated circuits for powerline communications reported a fourth-quarter net loss that was not as bad as Wall Street projected.
The Ocala, Fla.-based company announced after the close on Monday that revenue for the quarter ended Dec. 31, 2007, increased 76% to $15.7 million from $8.9 million a year earlier. The net loss for the quarter was $2.7 million, or $0.09 per share.
Five analysts polled by Thomson Financial were calling for revenues of $15.4 million and a net loss of $0.13 per share.
“In its first report as a public company, Intellon’s [fourth-quarter] results and guidance were substantially in line with expectations,” wrote Eric Kainer, an analyst with investment bank ThinkEquity Partners, in a research note today.
Revenue for the entire 2007 year jumped 55% to $52.3 million from $33.7 million in 2006.
“From strong revenue growth to the completion of our initial public offering, 2007 was another exceptional year for Intellon,” said chairman and CEO Charles Harris in a statement. “Perhaps more importantly, we continued to put the building blocks in place for future periods.”
“We believe that powerline communications has broad applicability given that almost all households have numerous power outlets versus less prevalent coaxial or twisted pair wiring,” writes Kainer, who has a “buy” rating on Intellon’s stock and has set a price target of $10.
Kainer believes that the competitive landscape is “favorable,” with Spain-based Design of Systems on Silicon S.A. (DS2) being the only main competitor.
At 2:33, shares of Intellon Corp. (ITLN) had declined $0.03, or 1%, to $4.97. The 52-week low of $4.81 was set on Feb. 8, while the 52-week high of $8.04 was touched on Dec. 26, 2007.
