Cannan ( NASDAQ: CAN ) turned in a wider than expected fourth-quarter loss Tuesday as the further slump in bitcoin ( BTC-USD ) prices during the period led to diminished demand for mining machines. For the first quarter of 2023, the Beijing, China-based company expects total net revenues to be around RMB (US$65M). Q4 EPS of -RMB2.61 (US-$0.38), vs. average analyst estimate of -RMB1.32, fell from RMB0.27 in Q3 and from RMB6.90 in the year-earlier quarter. Revenue of RMB391.9M (US$56.8M), exceeding the RMB309.1M consensus, dropped from RMB978.2M in Q3 and from RMB2,184.6M in Q4 2021. "Considering very soft market demand and low selling price, we incurred an additional inventory write-down of RMB205.3 million, which also dampened our gross margin," said CFO James Jin Cheng. Total operating expenses were RMB393.5M compared with RMB275.0M in Q3 and RMB273.7M a year ago. Impairment on cryptocurrency was RMB11.3M, matching that of Q3 and rising from nil in Q4 2021, mostly due to the declining bitcoin ( BTC-USD ) price during the quarter. Earlier, Canaan Non-GAAP EPS of -$0.38, revenue of $56.8M .
