Friday, April 10, 2015

Mavenir to Miss Expectations, Citing VoLTE Delays

Citing delayed VoLTE projects, Mavenir Systems said it now expects first quarter revenues to be in the range of $27.0 million to $28.5 million, below previously announced guidance range of $39.0 million to $41.0 million. Non-GAAP EPS is expected to be in the range of $(0.47) to $(0.41). Non-GAAP operating loss is expected to be between ($12.5) million and ($10.5) million, also below the previously announced guidance of a non-GAAP loss in the range of $(4.0) million to $(2.3) million.The shortfall in revenue results in non-GAAP gross profit margin percentages in the range of 50% to 53% which is also below the guidance range of 60% to 62%.

Mavenir said the revenue shortfall is primarily the result of shifts in projects with existing purchase orders, specifically:

  • Projects where acceptances were delayed as customers moved their VoLTE network launch timelines
  • Projects where acceptance was delayed due to the announcement of the pending acquisition of Mavenir by Mitel Networks Corporation
  • Additionally, impact from foreign exchange rates was a negative factor.

“While disappointing, our performance in the first quarter was largely impacted by a shift in the timing of operator launches in Europe and timing issues associated with the pending acquisition of Mavenir,” said Pardeep Kohli, Mavenir President and Chief Executive Officer. “The delayed projects are primarily with customers where Mavenir has established customer purchase orders. We remain encouraged by ongoing and strong customer roll-outs, including the recent launches by Vodafone Germany of Europe’s first VoLTE and EE (Everything Everywhere) of Wi-Fi Calling.”