Shares of Casa Systems (NASDAQ:CASA) have plunged today, down by 21% as of 12:20 p.m. EDT, after the company reported second-quarter earnings results. Sales fell far short of the Street's expectations and Casa lowered its full-year guidance.
Revenue in the second quarter rose 3% to $68.7 million, which was well below the $90.3 million in sales that analysts were modeling for. That translated into non-GAAP net income of $22.2 million, or $0.24 per share. The company was able to beat on the bottom line, though, as the consensus estimate called for adjusted earnings per share of $0.23. Gross margin expanded to 71.9%.
Casa's board also authorized a $75 million share repurchase program.
"During the quarter, we expanded into new geographies with new and existing customers. As part of our land and expand business model, we believe these deployments will lead to high-margin capacity expansions in the future," CEO Jerry Guo said in a statement. "While we are disappointed with the moderation in our top-line growth during the second quarter, we believe that this is related to the timing of several projects involving network transformation and capacity upgrades."
In terms of outlook for the full year, revenue is now expected in the range of $330 million to $350 million, which should result in non-GAAP net income of $76 million to $83 million, or $0.80 to $0.88 per share. Those forecasts are down from the guidance issued in May, which previously called for sales of $380 million to $395 million and adjusted earnings per share of $1.08 to $1.19.