Shares of Casa Systems (NASDAQ:CASA) slumped on Thursday after the provider of broadband infrastructure technology solutions reported its first-quarter results. The company badly missed analyst estimates for both revenue and earnings, sending the stock down about 15% by 11:15 a.m. EDT.
"The first quarter was one of our toughest quarters," remarked Casa CEO Jerry Guo. First-quarter revenue was $35.5 million, down 60% year over year and more than $20 million below the average analyst estimate. An industrywide slowdown in hardware spending, large customers redirecting capital expenditures elsewhere, and a slower transition to wireless and fixed telco revenue than expected drove revenue lower.
Non-GAAP earnings per share came in at a loss of $0.14, down from a profit of $0.23 in the prior-year period and $0.16 lower than analysts were expecting. Adjusted EBITDA was a loss of $7.7 million, down from a profit of $29.5 million in the prior-year period.
Casa is expecting a stronger second half, with CFO Maurizio Nicolelli pointing to a strong pipeline of opportunities. For the full year, the company expects revenue between $250 million and $300 million, and non-GAAP EPS between $0.30 and $0.40.
With miserable first-quarter results, it's not surprising to see the stock selling off.