Xunlei Stock Drops 12% on Disappointing Fourth Quarter
The cloud-based technology accelerator said its net loss in the fourth quarter doubled while revenue declined.
Xunlei Ltd. (Nasdaq: XNET) ended nearly 12 percent lower Thursday on Wall Street, at $4.10 per American depositary share, after its fourth quarter financials showed lower revenue and wider losses.
The Shenzhen-based tech company, which has been developing blockchain services, said in a statement today that its revenue in the three months through December was $42.3 million, down 7 percent year-over-year. It also said its net loss more than doubled to $32.4 million from the same period of 2017. Per share loss was 48 cents.
For the full year, Xunlei reported revenue of $232.1 million, a 15 percent increase, and net loss from continuing operations of $40.8 million, compared with a loss of $44.2 million in 2017.
"Our shared cloud computing business made strong progress over the year," Xunlei's chief executive officer, Lei Chen, said in the statement. "We substantially expanded the scale of our network capacity through innovative products and our sold bandwidth reached its historical high in December 2018."
He added, "We also became a well-known blockchain player, providing blockchain services with high performance, which opened the door for exciting opportunities, as the market matures in the future."
The company attributed its soaring net loss, in part, to a one-time impairment of assets in the amount of $6.3 million and a one-time $5.7 million impairment of long-term investments.
In the first quarter, Xunlei said it expects to generate revenue in the range of $39 million to $43 million, representing a decrease of approximately 3 percent at the midpoint quarter-over-quarter.