The company's net income also fell sequentially, down 27% to $626,000 or $0.03 per diluted share compared with $853,000 ($0.04 per share) in the third quarter of 2004. Year-on-year, net income increased significantly from $50,000 ($0.00 per share) for the fourth quarter of 2003.
For the first quarter of 2005, the company currently targets revenues in the range of $10.8 million to $11.3 million with earnings of $.01 to $.03 per share.
Revenues for the full year ended December 31, 2004 were $40.2 million, an increase of 39% from the $28.8 million reported in 2003.
Net income for the full year ended December 31, 2004 was $2.4 million ($0.14 per share), compared to a loss of $727,000 or $(0.26) per diluted share reported in 2003.
"2004 marked several milestones for Color Kinetics, both financially and technologically," said George Mueller, Chairman and CEO. "We successfully completed an IPO, strengthened our balance sheet, achieved positive cash flow from operations, significantly improved gross margins, and delivered our first full year of profitability. We also launched the first-of-its-kind IntelliWhite series of products for specialized white light applications.
Mueller said that Color Kinetics is "firmly on track to maintain its leadership position in 2005 and beyond" in pioneering new intelligent solid-state lighting technologies and in fostering broader industry adoption.
Bill Sims, president and COO, said that the company's Lighting Systems and OEM and Licensing business units had both made solid contributions, showing returns on our sales and channel expansion programs.
"We expect to continue this positive momentum into 2005 through strategic investments in sales, engineering, product development, product management, and other initiatives designed to fuel the company's future growth," said Sims.
During the fourth quarter, Color Kinetics unveiled 15 new products and was issued two new patents pertaining to the synchronization of lighting effects and aspects of the company's Chromacore® technology.