Guidance Software (GUID) Misses Q3 EPS by 7c, Lowers Outlook; CEO Resigns

Guidance Software (NASDAQ: GUID) reported Q3 EPS of ($0.01), $0.07 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $27.8 million versus the consensus estimate of $30.2 million.

Guidance Software sees FY2014 EPS of ($0.17)-($0.14), versus the consensus of $0.01. Guidance Software sees FY2014 revenue of $109-110 million, versus the consensus of $114.7 million.

The company also announced that Barry Plaga, Chief Financial Officer (CFO) of Guidance Software, has been appointed Interim Chief Executive Officer (CEO). This appointment follows the departure of Victor Limongelli as Guidance Software’s President and CEO and his resignation as a member of the Company’s Board of Directors. All actions were effective on November 5, 2014.

Guidance Software Interim Chief Executive Officer and current Chief Financial Officer Barry Plaga said, “The third quarter was disappointing. In particular, our enterprise federal business was down 39%. Despite this decline, we did, however, see areas where our transition strategy from a predominantly forensics and e-discovery business to a more robust cybersecurity offering is working; while forensics and e-discovery had a difficult quarter, we added a significant number of new customers, especially EnCase® Cybersecurity customers during the third quarter. We are on track to achieve our goal of 1,000 new customers in 2014.”

Mr. Plaga continued, “The softness we experienced in the third quarter will impact our expectations for our full year 2014 results. Therefore, we are lowering our revenue guidance to a range of $109 to $110 million and our non-GAAP EPS guidance to a range of $(0.17) - $(0.14) for the full year. In the short term our focus will be on three crucial areas: aligning sales and marketing to drive product revenue growth; launching our new cybersecurity product in 2015, which will be the biggest product release in Guidance’s history; and diligently controlling expenses while working to expand EBITDA margins. Although we certainly have our work cut out for us, I have a very strong team behind me and exceptional offerings to drive Guidance’s further progress.”

For earnings history and earnings-related data on Guidance Software (GUID) click here.

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