Casa Systems (CASA) reported earnings on Thur 31 Oct 19 (a/h)
** charts before earnings **
** charts afterearnings **
Casa Systems misses by $0.13, misses on revs; lowers FY19 below consensus
Reports Q3 (Sep) loss of $0.03 per share, excluding non-recurring items, $0.13 worse than the S&P Capital IQ Consensus of $0.10; revenues rose 14.4% year/year to $81.8 mln vs the $108.08 mln S&P Capital IQ Consensus.
Co issues downside guidance for FY19, sees EPS of ($0.25)-(0.15), excluding non-recurring items, vs. $0.24 S&P Capital IQ Consensus; sees FY19 revs of $255-270 mln vs. $325.25 mln S&P Capital IQ Consensus.
"While our access device business was line with our expectations for the third quarter, revenue from our cable products, as well as revenue recognition from our wireless backlog, were lighter than anticipated," said Jerry Guo, Casa's President and CEO. "During the quarter, while we saw increased appetite for spending from our cable customers, timing for closing certain larger orders was more protracted than what we have seen previously. And, in our wireless business, while we continue to build our backlog, we saw a 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. Although our third quarter revenue was lower than expected, our overall business became diversified as half of our revenue came from our cable business with the remaining revenue split between our wireless and fixed telecom segments. This diversification indicates progress toward transforming the business while providing more stability in our revenue base in the future."