Operating expenses were $40.4 million, an increase of 11 percent compared with $36.2 million in the prior fiscal second quarter. The increase is primarily due to investments in research and development.
Net loss was $4.7 million, or $0.06 per share, for the 2018 fiscal second quarter, compared to a net loss of $9.4 million, or $0.11 per share, for the 2017 fiscal second quarter.
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Adjusted EBITDA for the 2018 fiscal second quarter was $4.8 million, compared to $1.8 million in the prior fiscal year second quarter.
Cash, cash equivalents, investments and short-term restricted cash were $106.1 million as of December 31, 2017 compared to $94.4 million as of September 30, 2017.
In December 2017, the company entered a $40 million term loan while concurrently reducing the borrowing facility under its existing revolving loan by $20 million. As previously announced, the company intends to use the net proceeds of the term loan, combined with existing cash on hand, to retire its 3.50% Series A convertible senior notes due February 1, 2018.
Fiscal Six Month Results
For the six months ended December 31, 2017, gross product orders totaled $133.6 million compared to $128.8 million for the same prior fiscal year period.
Total revenue for the six months ended December 31, 2017, was $191.3 million compared to $174.0 million in the prior fiscal year period. Product revenue totaled $86.0 million compared to $71.0 million in the prior fiscal year period, while service revenue totaled $105.3 million compared to $103.0 million in the prior fiscal year period. The increase in product revenue is primarily related to backlog conversion of orders to revenue from the EIMEA, APAC, and Japan regions. Service revenue increased modestly due to the continued install base expansion.
Total gross profit for the six months ended December 31, 2017, was $77.5 million or 40.5 percent of sales, comprised of product gross margin of 43.1 percent and service gross margin of 38.4 percent. This compares to total gross profit of $62.7 million or 36.1 percent of sales, comprised of product gross margin of 34.8 percent and service gross margin of 36.9 percent for the same prior fiscal year period. The increase in product gross margin stemmed from higher sales unit volume, lower intangible amortization as well as product and channel mix.
Operating expenses were $80.5 million, an increase of 9 percent compared with $74.1 million in the prior fiscal year period. The increase is primarily due to investments in research and development as well as G&A.
Net loss was $14.1 million, or $0.17 per share, for the six months ended December 31, 2017, compared to a net loss of $19.3 million, or $0.24 per share, for the prior fiscal year period.
