Canaan Slips To Loss In Q1 On Weak Revenues; Sees Sequentially Higher Revenues In Q2

(RTTNews) - Canaan Inc. (CAN), a Singapore-based computing solutions provider, Thursday reported a loss for the first quarter, compared to profit for the same period last year, on lower revenues.

The first-quarter loss was $84.4 million, compared to earnings of $65.1 million last year.

Loss per ADS was $0.51, compared to earnings per ADS of $0.38 a year ago.

Adjusted loss was $71.8 million, compared to adjusted net income of $80.8 million in the same period of previous year.

Revenue decreased to $55.2 million from $201.8 million last year, particularly impacted by reduction in industry-wide selling process and unforeseen delays in payment and shipments after the series of US bank failures.

On average, three analysts polled by Thomson Reuters expected revenues of $62.43 million for the quarter. Analysts' estimates typically exclude special items.

Looking ahead for the second quarter, the company expects total revenue to be around $72 million, taking into account the challenging market conditions across the industry.

In premarket activity, shares of Canaan were trading at $2.38, down 7.75% or $0.20 on the Nasdaq.