Casa Systems: Plummets on surprise loss, cuts FY revenue outlook

Casa Systems

31/10/2019 22:17

** Shares of cloud-based software provider  CASA.O  tumble
~22% to $5.26 aftermarket on surprise loss, lowers FY revenue
outlook
    ** Stock to hit record low, set for its worst day in over 9
months, if losses hold
    ** Posts Q3 adj. loss of 3 cents/shr vs IBES est. of profit
of 10 cents/shr; reports rev of $81.8 mln below est. of $108 mln
- Refinitiv data
    ** Expects FY adj loss of 15-25 cents/shr vs IBES est. of
profit of 24 cents/shr
    ** Now sees FY rev between $255 mln and $270 mln from prior
outlook of $320 mln-$350 mln; analysts expect FY revenue of
$325.3 mln
    ** Co continues to build backlog in wireless business, owing
to delay in revenue recognition "due to new features that were
requested to be added to a product associated with one of our
larger purchase orders" - CEO
    ** Up to Thursday's close, stock down ~50% YTD

 (Reporting by C Nivedita in Bengaluru)
 ((C.Nivedita@thomsonreuters.com))