Intermolecular, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported total revenue of $9,802,000 compared to $8,089,000 a year ago. Income from operations was $281,000 compared to loss from operations of $2,994,000 a year ago. Income before provision for income taxes was $496,000 compared to loss before provision for income taxes of $2,854,000 a year ago. Net income was $496,000 or $0.01 per basic and diluted share compared to net loss of $2,854,000 or $0.06 per basic and diluted share a year ago. Non-GAAP operating income was $493,000 compared to non-GAAP operating loss of $2,672,000 a year ago. Non-GAAP net income was $708,000 or $0.01 per basic and diluted share compared to non-GAAP net loss of $2,532,000 or $0.05 per basic and diluted share a year ago. Adjusted EBITDA was $1,838,000 compared to adjusted LBITDA of $968,000 a year ago.

For the quarter, the company reported total revenue of $19,477,000 compared to $18,033,000 a year ago. Loss from operations was $533,000 compared to $8,982,000 a year ago. Loss before provision for income taxes was $126,000 compared to $8,690,000 a year ago. Net loss was $127,000 or $0.00 per basic and diluted share compared to net loss of $8,691,000 or $0.18 per basic and diluted share a year ago. Net cash provided by operating activities was $5,931,000 compared to net cash used in operating activities of $56,000 a year ago. Purchase of property and equipment was $489,000 compared to $521,000 a year ago. Non-GAAP operating loss was $51,000 compared to $8,004,000 a year ago. Non-GAAP net income was $355,000 or $0.01 per basic and diluted share compared to non-GAAP net loss of $7,713,000 or $0.16 per basic and diluted share a year ago. Adjusted EBITDA was $2,804,000 compared to adjusted LBITDA of $2,878,000 a year ago.

For the third quarter of 2018, the company expects GAAP net loss in the range of $1,700,000 to $2,800,000, non-GAAP net loss in the range of $1,400,000 to $2,500,000, GAAP net loss per share in the range of $0.04 to $0.06 and non-GAAP net income per share in the range of $0.03 to $0.05. Revenue is projected to be in the range of $6.5 million to $7.5 million. Adjusted EBITDA loss is projected to be between $0.6 million and $1.7 million. For the third quarter of 2018, the company expected non-GAAP gross margins to be between 68% and 70%.

Looking at the fiscal year 2018 as a whole, the company is updating revenue guidance to be between $34 million and $36 million, highlighted by a 15% year-over-year growth in services business at the midpoint.

As look toward 2019, the company remain confident in ability to grow and scale business profitably.