Monday, April 9, 2012

Procera Increases Outlook, Confirms Tier 1 Order

Procera Networks increased its financial guidance, disclosed a multimillion dollar follow-on order from a Tier-1 European operator and announced a new offering of stock.

Based on preliminary financial data, Procera expects that first quarter 2012 financial results will reflect revenue in the range of $11.8 million to $12.2 million for the quarter, representing a year-over-year increase in the range of 71% to 77%. Bookings are expected to be approximately $14.6 million for the quarter, while gross margin is expected to be greater than 65% for the quarter, as compared with 61% in the first quarter last year.

"We are pleased with the outcome for our first quarter of 2012 and the strength of our business model. We continue to gain traction in the fast growing IPE market as evidenced by our strong first quarter results,�? said James Brear, president and CEO of Procera Networks. “With our industry leading solutions and customized analytics that enable broadband service providers to effectively operate and monetize their networks, we believe 2012 will be the year that Procera establishes itself as the leader in Intelligent Policy Enforcement.�?

Procera Networks also announced a $2 million follow-on order from a Tier-1 European Mobile Operator. This order is the third from this operator, and supports an increase in the number of subscribers handled by the PacketLogic solutions and the deployment of video optimization to better manage OTT video streaming. The majority of this revenue is expected to be recognized in the first quarter of 2012.

In addition, Procera Networks announced plans to offer to sell 3,500,000 shares of its common stock in an underwritten public offering. Procera expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering to cover over-allotments, if any. All of the shares in the offering will be sold by Procera. The company intends to use the net proceeds from the offering for working capital and general corporate purposes including potential acquisitions.

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