Aerohive Networks Inc. warned Tuesday that fourth-quarter revenue will be lower than the company’s previous guidance. Aerohive said that it expects revenue of about $37 million for the final quarter of 2017, after previously stating expectations of $40 million to $42 million. The company said it expects to report a net loss of $3 million to $4 million, but a non-GAAP operating profit after subtracting stock-based compensation and other effects. “Following the change in our sales leadership at the end of our third quarter, we uncovered underlying sales execution issues which became fully apparent in the last month of the fourth quarter,” Chief Executive David Flynn said in Tuesday’s announcement. “We have taken actions to replace underperforming sales team members, and we believe that the new people we have been putting in place, combined with other actions, will enable us to capitalize on our improved product offering and exciting roadmap in 2018.” The company expects to fully report fourth-quarter earnings on Feb. 8. Aerohive shares plunged more than 18% in light after-hours trading following the announcement.
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