Adesto Technologies Corporation announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported revenue, net of $18,183,000 compared to $13,412,000 a year ago. Loss from operations was $3,913,000 compared to $1,536,000 a year ago. Net loss was $5,058,000 or $0.24 per basic and diluted share compared to $1,751,000 or $0.11 per basic and diluted share a year ago. Non-GAAP loss from operations was $489,000 compared to $245,000 a year ago. Non-GAAP net loss was $1,634,000 or $0.08 per basic and diluted share compared to $460,000 or $0.03 per basic and diluted share a year ago. Adjusted EBITDA was $102,000 compared to $99,000 a year ago. Loss before provision for income taxes was $5,095,000 against $1,738,000 a year ago.

For the six months, the company reported revenue, net of $33,485,000 compared to $24,719,000 a year ago. Loss from operations was $4,863,000 compared to $4,089,000 a year ago. Net loss was $6,160,000 or $0.29 per basic and diluted share compared to $4,526,000 or $0.28 per basic and diluted share a year ago. Non-GAAP loss from operations was $702,000 compared to $1,665,000 a year ago. Non-GAAP net loss was $1,999,000 or $0.09 per basic and diluted share compared to $2,102,000 or $0.13 per basic and diluted share a year ago. Adjusted EBITDA was $400,000 compared to adjusted LBITDA of $989,000 a year ago. Loss before provision for income taxes was $6,176,000 against $4,486,000 a year ago.

The company provided earnings results guidance for the third quarter and fourth quarter 2018. For the third quarter of 2018, the company expects revenue to increase to a range between $19.0 million and $21.0 million. Gross margin is expected to be between 45% and 48% and GAAP operating expenses are expected to range between $11.1 million and $11.4 million, or $9.2 million and $9.5 million on a non-GAAP basis, which excludes approximately $0.9 million in stock-based compensation expense and $1.0 million in amortization of acquisition-related intangible assets. Interest expense is expected to be approximately $1.4 million, and that includes about $0.4 million associated with amortizing fair value warrants, which issued in connection with the credit facility.

For the fourth quarter, the company expects revenues in the fourth quarter to increase by more than 65% over the $16.2 million in revenue, reported in the fourth quarter of 2017. In addition, also expect pro forma gross margins to be approximately 50%. And as know, previously disclosed and discussed cost synergies that expect to be able to attain related to the acquisition. And as work through those, will become a larger, growing, more profitable company providing a broader set of solutions across more than 2,000 customers with a focus on the industrial sector. This in turn will drive a financial model that over time should provide operating and EBITDA margins of more than 20%.