Casa tumbles after weak report, slashing of FY outlook

Casa Systems

01/11/2019 15:46

** Casa Systems Inc  CASA.O  shares gapped down to a record low,
last down 33.5% in brisk trade after disappointing quarterly
report, full-year profit and revenue warning
    ** Casa shares last traded at $4.47 after earlier falling to
$4.20. Trading volume 7.4 times 10-day moving average. 
   ** Reported diluted Q3 net loss/shr of $0.10 vs earnings per
share of $0.21 year-ago on rev of $81.8 mln vs $71.5 mln
year-ago
    ** For FY 2019, now forecasting revenue of $255 mln-$270
mln, adjusted EBITDA of breakeven to $10 mln. GAAP net loss/sh
of $0.35-$0.45, Non-GAAP net loss/shr $0.15-$0.25
    ** In July it had forecast full year revenue of $320
mln-$350 mln, Adjusted EBITDA of $40 mln-$50 mln, GAAP diluted
EPS of $0.00-$0.10, Non-GAAP diluted EPs $0.20-$0.30
    ** CASA said Q3 cable products rev, and rev recognition from
wireless were lighter than anticipated, timing for closing
larger cable orders more protracted, wireless rev recognition
delay due to new features requested in a larger orders. 
    ** However, business diversified with half rev from cable,
rest split between wireless and fixed telecom indicating
"progress toward transforming the business", providing more
stability in future revenue base, company said

 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))