Aerohive Networks Sees Weak Q3; Stock Down

(RTTNews) - Aerohive Networks (HIVE) said that it now expects wider-than-expected loss for the third quarter of fiscal year 2014 ended September 30, 2014. It also cut its quarterly revenue outlook citing weaker-than-expected order volume.

The Company anticipates for the third quarter net loss per share on a GAAP basis to be in the range of $0.18 to $0.16, compared with the Company's previously stated guidance of $0.16 to $0.14, and net loss per share on a non-GAAP basis to be in the range of $0.12 to $0.10, compared with the Company's previously stated guidance of $0.10 to $0.08.

Aerohive expects revenue for the third quarter to be approximately $34.5 million to $35.5 million, which is below the Company's previously stated guidance of $38.0 million to $40.0 million. On a non-GAAP basis, the Company expects gross margin to be between 67.5 percent and 68 percent, in line with the Company's previously stated guidance.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.09 per share and revenues of $38.87 million for the third-quarter. Analysts' estimates typically exclude special items.

"As we approached the end of the third quarter we saw weaker-than-expected order volume that led to revenues below our prior guidance. The Q3 shortfall was primarily in our less-developed sales territories where sales capacity is not ramping as quickly as expected and performance has been inconsistent," stated David Flynn, President and Chief Executive Officer.

The company stated that its more mature sales territories generally continued to perform well, following the strong growth they have delivered in recent quarters. It does not believe this quarter's performance reflects a fundamental shift in the market demand for its products - it added over 1500 new end-customers in the quarter, and it remains confident in its long-term strategy and growing market opportunity.

HIVE closed Friday's trading at $6.63. In the pre-market trade, HIVE is currently trading at $5.49, down $1.14 or 17.19%