Procera Networks (PKT) Guides Q3, FY14 Revenue Below Expectations

Procera Networks (NASDAQ: PKT) eported preliminary revenue, bookings and gross margin rate results for the third quarter ended September 30, 2014.

Revenue for the third quarter of 2014 is now expected to be approximately $16 million, a year-over-year quarterly revenue decline of approximately 25%. The ratio of bookings to revenue for the third quarter of 2014 is expected to be above 1. The company expects the gross margin rate target range in low to mid-60%s for the third quarter of 2014. Revenue for the fiscal year ending December 31, 2014 is expected to be in the range of $70 million to $75 million, compared with $74.7 million for the year ended December 31, 2013.

*** The Street sees Q3 revs of $22.6 million and FY14 revs of $85.2 million.

We now expect a non-GAAP net loss for the third quarter of 2014 and the year ending December 31, 2014.

"Our second half of 2014 revenue performance is expected to be below the company's plans because of large opportunities not closing as quickly as originally anticipated. The customer prospects remain in our pipeline and we hope to close a number of them," stated James Brear, President and CEO of Procera Networks. "We are disappointed by our expected revenue performance for 2014 and we are committed to improving our results in the future. Our strategy of helping Service providers improve their subscribers' experience is being well received, including our developing initiatives Network Virtualization, RAN Perspectives, and networks and subscriber analytics capabilities which are unique and will allow us to grow our addressable market in 2015."

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