Inphi announced results for its fourth quarter and full year ended December 31, 2011.
Revenue for the fourth quarter was $17.3 million, compared with $21.1 million for the fourth quarter of 2010.
As reported under U.S. generally accepted accounting principles (GAAP), fourth quarter 2011 net loss was $0.3 million, or ($0.01) per share, compared with GAAP net income of $3.0 million, or $0.11 per diluted common share, for the fourth quarter of 2010. GAAP net income and earnings per share for 2010 reflect in part a large income tax benefit recorded in 2010 related to the release and reversal of valuation allowances against deferred tax assets provided in previous periods.
Gross margin on a GAAP basis for the fourth quarter of 2011 was 63.8% of revenue, compared with 65.2% of revenue for the fourth quarter of 2010.
Inphi reports gross margin, net income (loss), and earnings per share in accordance with GAAP and on a non-GAAP basis. A reconciliation of the GAAP to non-GAAP gross margin, net income, and earnings per share, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this news release.
Gross margin on a non GAAP basis for the fourth quarter of 2011 was 64.3% of revenue, compared with 65.5% of revenue for the fourth quarter of 2010.
Non-GAAP net income for the fourth quarter of 2011 was $0.2 million, or $0.01 per diluted share. This compared with non-GAAP net income of $2.5 million, or $0.10 per diluted share, for the fourth quarter of 2010. Non-GAAP diluted earnings per share declined from the year-ago quarter due to lower non-GAAP net income, as well as a higher number of shares outstanding related to the company's issuance of common shares and the conversion of preferred shares into common shares, both in connection with the company's initial public offering.
"Q4 brought both a bottoming and a beginning of a resurgence in our server business," said Young K. Sohn, President and CEO of Inphi. "Last summer, we experienced headwinds in the form of supply chains that were largely focused on minimizing inventory risk. However, during Q4 customers began to loosen the reins and rebuild their supply chains.
"Heading into Q1 of 2012, we anticipate the March introduction of exciting next-generation server platforms that will use our Isolation Memory Buffer (iMB) and RDIMM products that we expect will drive additional growth throughout the year. In addition, our new 100GbE iPHY(TM) CMOS solutions continue to sample and have been well received, leading to exciting new design wins. We believe strongly in our growth opportunities during 2012 and beyond."