TurboChef Technologies, Inc. reported financial results for the fourth quarter and the year ended Dec. 31, 2007. Total revenue for fourth quarter 2007 was US$34.3 million, a 125% increase over the year ago quarter and a sequential increase of 6%. For the year ended 2007, total revenue was a record $108 million, at the high end of the previously announced range and a 122% increase over 2006's total revenue of $48.7 million. Gross margins for the quarter were 37% and for the year 38%.
The company's Commercial Segment posted operating income for the 2007 fourth quarter of $4.5 million. At present, substantially all of the company's revenue is derived from the Commercial Segment which includes more than 50,000 ovens installed worldwide.
The company has underway a number of pre-production trials with three new products: two new conveyor ovens, a floor model and a countertop model, and the i5, one of its new i-series speed cook batch ovens. The i5 will be joined later this year by the smaller footprint i3, which currently is under development.
The Residential Segment reported $238,000 in revenue for the quarter and an operating loss of $4.3 million, including $2.4 million for marketing and promotion expenses associated with the brand launch. For 2008, the company is reducing by half its original plans for marketing and promotional spending for the residential oven due to the current uncertain domestic housing environment.