Echelon Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. Revenues were $7.5 million in the fourth quarter, down from $9.6 million in the same period of 2015 and $8.2 million in the third quarter of 2016. The decrease in revenues from the third quarter of 2016 was the result of softness in the embedded systems business. GAAP net loss for the fourth quarter was $1.2 million, or $0.28 per share, compared with a net loss of $5.6 million, or $1.27 per share in the same period last year, and a net loss of $1.2 million, or $0.28 per share, in the previous quarter. The year-over-year improvement was due to operating expense reductions as well as foreign exchange benefits. Non-GAAP net loss for the fourth quarter was $0.5 million, or $0.11 per share, compared with non-GAAP net loss of $0.3 million, or $0.07 per share for the fourth quarter of 2015, and $1.1 million, or $0.25 per share, in the previous quarter. Loss from operations was $1.702 million against $5.838 million a year ago. Loss before provision for income taxes was $1.135 million against $5.613 million a year ago.

For the full year, the company reported revenue of $32.385 million against $38.804 million a year ago. Loss from operations was $4.729 million against $13.587 million a year ago. Loss before provision for income taxes was $3.921 million against $13.183 million a year ago. Net loss was $4.103 million or $0.93 per basic and diluted share against $13.233 million or $3.00 per diluted share a year ago. Non-GAAP net loss was $3.389 million or $0.77 per basic and diluted share against $4.482 million or $1.02 per diluted share a year ago. Net cash used in operating activities was $3.023 million against $4.926 million a year ago. Capital expenditures were $0.117 million against $0.306 million a year ago.

The company provided earnings guidance for the first quarter of 2017. Total revenues are expected to be in a range of $7.2 million to $7.6 million; GAAP gross margin is expected to be in a range of 53% to 55%; Non-GAAP gross margin is expected to be in a range of 54% to 56%; GAAP loss per share is expected to be between $0.35 and $0.47, based on 4.4 million weighted average shares outstanding; Excluding expected non-cash equity compensation charges of $0.13 per share, non-GAAP loss per share is expected to be between $0.22 and $0.34.