Stec drops to first-quarter loss on lower demand from big customer

Stec turns to 1Q loss

SANTA ANA, Calif. — Data storage device maker Stec Inc. on Thursday posted a first-quarter loss after a drop in orders from its biggest customer due to inventory issues.

Stec said it lost $5.4 million, or 11 cents per share, reversing a year-ago net income of $3 million, or 6 cents per share.

Revenue dropped nearly 39 percent, falling to $38.8 million from $63.5 million in the 2009 first quarter.

Stec said that much of the decline was due to an expected “trough period” for the company’s business due to an inventory carry-over at its largest customer. Stec has previously warned that its first-quarter results would be lower due to lower demand from EMC Corp.

Analysts surveyed by Thomson Reuters expected the company to lose 13 cents during the quarter on revenue of $33.68 million.

Stec said it expects second quarter earnings of zero to 3 cents per share on revenue of between $48 million and $50 million.

Analysts expect a 9 cent per share loss on revenue of $38.5 million.

Company shares closed down 60 cents, or 4.3 percent, to $13.23.