Aerohive Networks (HIVE) Warns for Q3
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Aerohive Networks® (NYSE: HIVE) today announced preliminary results for the third fiscal quarter ended September 30, 2016.
- Revenue for the third fiscal quarter is expected to be $40 million, which is below the Company's previously stated guidance of $46 million to $50 million (*** cons. is $47.96 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. On a non-GAAP basis, the Company expects gross margin to be between 67.5 percent and 68.0 percent, at the upper end of the Company’s previously stated guidance.
- On a GAAP basis, the Company expects 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. On a non-GAAP basis, the Company expects net loss per share to be between $0.06 to $0.07, compared with previously stated guidance of a loss of $0.01 to $0.07 per share. (** cons. is -0.04)
“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.”
In addition, the Company provided the following preliminary outlook for the fourth quarter. The Company expects fourth quarter revenue of $43 million to $45 million. On a non-GAAP basis, the Company expects fourth quarter gross margin to be between 67 percent and 68 percent and net loss per share to be between $0.06 to $0.09. This outlook assumes no improvement in the pace of E-Rate funding approvals.
A reconciliation of non-GAAP to GAAP net loss per share and non-GAAP to GAAP gross margin is discussed below, under Non-GAAP Financial Measures, and provided in the accompanying table.
These preliminary, unaudited results are based on management's initial review of operations for the quarter ended September 30, 2016 and remain subject to completion of the Company's customary quarterly closing and review procedures. There will not be a conference call in conjunction with this press release.
Third Quarter Financial Results Conference Call to be Held on November 2, 2016
Aerohive Networks will release final third quarter fiscal 2016 results and updated fourth quarter fiscal 2016 guidance in its regularly scheduled earnings release and conference call after the markets close on November 2, 2016. The conference call and live webcast for analysts and investors will take place at 2:00 p.m. Pacific Time that day. The call may be accessed by dialing 1-888-430-8705 (toll free) or 1-719-457-2632 (international) and providing the passcode 1210667. The live audio webcast of the conference call will be accessible from the “Investor Relations” section of the Company’s website at http://ir.aerohive.com. An audio replay of the call may be accessed at the same location after completion of the live call.
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