Citing slower E-Rate funding approvals, Aerohive Networks trimmed its financial guidance, saying it now expects revenue for the third fiscal quarter to be $40 million, which is below the company’s previously stated guidance of $46 million to $50 million.
On a GAAP basis, the company expects gross margin for the third fiscal quarter to be between 66.3 percent and 66.8 percent and net loss per share for the third fiscal quarter to be between $0.19 to $0.20, compared with previously stated guidance of a net loss of $0.14 to $0.20 per share.
“The pace of E-Rate funding approval letters slowed significantly in the last weeks of the third quarter. As of the end of the quarter, funding approvals for the program were running nearly 70 percent below the pace of last year,” stated David Flynn, President and Chief Executive Officer. “This significant decline in approvals was the primary driver of our weaker-than-expected order volume in the quarter, resulting in revenues below our prior guidance. Lower variable operating expenses in the quarter partially offset the revenue weakness and allowed us to be cash flow positive.”
Aerohive expects fourth quarter revenue of $43 million to $45 million.
