UPDATE: Goldman Sachs Reiterates Neutral Rating, Lowers PT on STEC on 4Q12 Revenues

In a report published Friday, Goldman Sachs analyst James Schneider reiterated a Neutral rating on STEC STEC, but slightly lowered the price target from $5.50 to $5.00. In the report, Schneider noted, “STEC reported 4Q12 revenues of $35.1 mn (down 16% qoq), below the low end of guidance of $36-$40 mn (down 5% to 14% qoq) and well below the Street at $37.7 mn. Including ESOs, operating EPS was ($0.42), well below our ($0.33) estimate. Excluding ESOs, operating EPS was ($0.36), below the Street at ($0.32). STEC guided 1Q13 revenues to $21-$23 mn (down 35%-40%), substantially below the Street at $39 mn, and it guided 1Q13 EPS of ($0.42)-($0.40), well below the Street at ($0.32). The company attributed the significant revenue shortfall to lower sales to key OEM customers, which we believe have continued to transition to competitive solutions. Management stated that it hopes to drive higher sales to direct enterprise customers and the channel market over the coming quarters.” STEC closed on Thursday at $5.49.