BANGALORE, Nov 6 (Reuters) - TurboChef Technologies Inc OVEN.O posted a narrower quarterly loss driven by strong performance at its commercial segment, and raised its 2007 commerical revenue outlook, sending shares up more than 5 percent.
The Atlanta, Georgia-based maker of speed-cooking ovens reported a third-quarter net loss of $1.8 million, or 6 cents a share, compared with a loss of $10.7 million, or 37 cents a share, a year ago.
Excluding a charge for option investigation, the company, whose customers include Subway, Hyatt Hotels, Hilton Hotels, Starwood Hotels HOT.N and Bellagio Hotel, earned 3 cents a share.
Revenue surged about 143 percent to $32.5 million. Almost all of the company’s revenue comes from the commercial segment.
Analysts had expected the company to report a loss of 9 cents a share, excluding items, on revenue of $26.9 million, according to Reuters Estimates.
TurboChef said the latest third-quarter results include a charge of $2.5 million, or about 9 cents a share, due to a stock option inquiry and $1.4 million, or about 5 cents a share, in marketing costs related to the launch of its new residential oven products.
The residential segment reported a loss of $3 million including the marketing costs, the company said in a statement.
“They are still investing in the residential launch... It’s going to take some time but they will be successful in the long run,” William Blair and Co analyst Jon Andersen said by phone.
For 2007, the company expects commercial revenue of $100 million to $108 million, up from its prior view of $85 million to $95 million. For 2008, it sees commercial revenue of $125 million to $135 million.
The company has momentum in the commercial business and there is potential in the residential marketplace, Andersen, who has “market perform” rating on the stock, said. Analysts were expecting revenue of $97.8 million for 2007 and $138.3 million for 2008.
Shares of the company were trading at $16.20 in late electronic trade after closing at $15.35 Tuesday on the Nasdaq. (Reporting by Supantha Mukherjee; Editing by Deepak Kannan)