Ecarx loss widens on soaring memory prices
Digital cockpit maker Ecarx Holdings Inc. (ECX.US) on Wednesday reported its revenue rose 10% year-on-year to $241 million in the third quarter, but its loss widened considerably due to rising costs from soaring memory prices.
The company’s sale of goods during the quarter rose 23% year-on-year to $223 million, which it attributed to a pricing adjustment in response to rising memory prices. Its software licensing revenue fell 56% year-on-year to just $400,000, while its service revenue also fell 53% to $17.7 million.
The company’s cost of revenue rose 30% during the quarter, or triple the rate of its revenue growth, causing its gross margin to plunge to just 7.0% from 21.9% a year earlier. As a result, its net loss widened to $48.6 million from an $8.4 million loss a year earlier.
Looking ahead, Ecarx maintained its previous guidance for revenue of $1 billion to $1.1 billion this year, though it said it expected high memory prices to continue weighing on its gross margin and profit.
Ecarx shares tumbled 21% in Thursday trading in New York to close at $0.7033. The stock is down nearly 60% this year.
By Doug Young
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