Ikanos Communications, Inc. has a market cap of $98.9 million; its shares were traded at around $1.31 with and P/S ratio of 0.7.
This is the annual revenues and earnings per share of IKAN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of IKAN.
Highlight of Business Operations:We incurred net losses of $6.4 million and $13.1 million, respectively, for the fiscal quarter and nine months ended September 30, 2012, respectively, and we had an accumulated deficit of $291.2 million as of September 30, 2012. To achieve consistent profitability, we will need to generate and sustain higher revenue, while maintaining cost and expense levels appropriate and necessary for our business. Although we have the cash necessary to fund our operations for the foreseeable future, we may also seek additional financing as deemed appropriate to support future company needs and investments. We filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC) on October 25, 2010 (declared effective on November 1, 2010) under which we can offer and sell up to $30.0 million of our common stock and warrants. On November 11, 2010 and December 7, 2010 we sold a total of 12.8 million shares of common stock under the Form S-3 in an underwritten offering for $13.5 million. After deducting underwriting fees, legal, accounting and other costs, we realized proceeds of $12.5 million.
Revenue decreased by $4.0 million, or 11%, to $31.4 million in the three months ended September 30, 2012 from $35.4 million in the three months ended October 2, 2011. Revenue decreased by $7.0 million, or 7%, to $94.2 million in the nine months ended September 30, 2012 from $101.1 million in the nine months ended October 2, 2011. This decline reflects the decline in the certain legacy products offset partially by the new product introductions in our Fusiv product family. With respect to revenue from our Fusiv product family, we are seeing a one to two quarter push-out in the ramp in certain end markets and carrier product launches for new products that are expected to replace their legacy products.
Cost of revenue decreased by $1.0 million, or 6%, to $16.6 million for the three months ended September 30, 2012 compared to $17.6 million for the three months ended October 2, 2011. Cost of revenue decreased by $2.1 million, or 4%, to $48.3 million for the nine months ended September 30, 2012 as compared to $50.4 million for the nine months ended October 2, 2011. The decrease in cost of revenue for both the three and nine month periods ended September 30, 2012 compared to the same periods last year is directly attributable to our decreased sales volume and certain changes in product mix. Our gross margins were 47% for the three months ended September 30, 2012 as compared to 50% for the three months ended October 2, 2011. The gross margin decline resulted from changes in product mix as sales declines in higher margin Broadband DSL products were replaced with lower margin Communications Processor products. During the fiscal third quarter of 2012 we sold $0.4 million of inventory previously written off. This compares to $0.6 million recognized in the fiscal third quarter of 2011.
For the three and nine months ended September 30, 2012 we have had no sales of marketable securities or other investments. For the nine months ended October 2, 2011 we recognized a gain of $1.3 million. In the fiscal first quarter of 2011 we sold our auction rate securities for $2.0 million and recognized a gain of $1.3 million. At January 1, 2011 the $1.3 million was included as comprehensive income within the stockholders equity.
Interest income and other, net consists primarily of interest income earned on our cash, cash equivalents and investments, as well as other non-operating expenses including gains and losses on foreign exchange and the sales of fixed assets. Net interest income and other, net was $0.1 million for the three months ended September 30, 2012 compared to a loss of $0.3 million for the three months ended October 2, 2011. The loss in the fiscal third quarter of 2011 was directly related to losses recognized on the Euro and the Indian rupee. Interest income and other, net was a loss of $0.3 million for the nine months ended September 30, 2012 due to foreign exchange losses of $0.3 million predominantly on the Indian rupee. The gain resulted from income on the sale of auction rate securities offset by foreign exchange losses.
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