Tuesday, October 14, 2014

Aerohive Cuts Q3 Guidance

Aerohive Networks, which specializes in controller-less Wi-Fi and cloud-managed mobile networking for the enterprise market, trimmed its financial guidance, saying it now expects revenue for the quarter to be approximately $34.5 million to $35.5 million, which is below the company's previously stated guidance of $38.0 million to $40.0 million. The company also expects for the third quarter net loss per share on a GAAP basis to be in the range of 18 cents to 16 cents, compared with the company’s previously stated guidance of 16 cents to 14 cents.

“As we approached the end of the third quarter we saw weaker-than-expected order volume that led to revenues below our prior guidance. The Q3 shortfall was primarily in our less-developed sales territories where sales capacity is not ramping as quickly as expected and performance has been inconsistent,” stated David Flynn, President and Chief Executive Officer. “Our more mature sales territories generally continued to perform well, following the strong growth they have delivered in recent quarters. We do not believe this quarter’s performance reflects a fundamental shift in the market demand for our products - we added over 1500 new end-customers in the quarter, and we remain confident in our long-term strategy and growing market opportunity.”