The grand old man of HPC announced results for Q2 yesterday. Revenue for the quarter ended June 30 was down substantially to $26.6M from $38.5M in the prior year. Net loss was $6.4M.
But it looks like the company took steps to soften the blow of its execution problems and things weren’t as bad as they could have been. Total gross margin was up from 32.5% to 40.3%, with product margin seeing the most improvement
Product margin for the second quarter was 40.3 percent compared to 26.6 percent in the second quarter of 2006. The high product margin was driven by product mix across a small number of transactions and the reduction of low margin development revenue.
Operating expenses were up on increased development costs but were partially offset by lower sales and marketing expenses and lower corporate overhead.