Tuesday, January 6, 2015

Meru Posts Disappointing Preliminary Results, Considers Options

Meru Networks announced preliminary results for the fourth quarter of 2014, saying it now expects revenues of approximately $21.0 million to $22.0 million, which is below the previously announced guidance range of $23.0 million to $27.0 million. The company announced a restructuring aimed to reduce breakeven from approximately $27.0 million in quarterly revenues to approximately $21.5 million to $22.5 million by the end of the first quarter of 2015.  Meru also said it has retained Deutsche Bank as its exclusive financial advisor to explore strategic options, including, but not limited to, strategic partnering of its technology and possible sale or merger of the company.

"We are disappointed with this performance, yet believe that our technology advantages can be converted into greater market adoption.  We are determined to optimize the mix of partners, channel distribution, and effective direct sales necessary to put the Company back on a growth track," said Dr. Bami Bastani, President and CEO of Meru. "Today we have taken a major step in further streamlining the company structure to accelerate decision making, enhance operational efficiencies, and reduce breakeven sales to position the company for profitability."