Shares of Casa Systems (NASDAQ:CASA) tumbled on Friday after the provider of broadband infrastructure solutions reported its third-quarter results. The company missed analyst estimates badly and substantially lowered its full-year guidance. As of 12:55 p.m. EDT, the small-cap stock was down 35.4%.
Casa reported third-quarter revenue of $81.8 million, up 14.4% year over year but $26.3 million below the average analyst estimate. "While our access device business was in line with our expectations for the third quarter, revenue from our cable products, as well as revenue recognition from our wireless backlog, were lighter than anticipated," said CEO Jerry Guo.
Non-GAAP (adjusted) earnings per share came in at a loss of $0.03, down from a profit of $0.22 in the prior-year period and $0.13 lower than analyst expectations. Gross margin plummeted more than 30 percentage points to 47.9%, and operating expenses rose.
For the full year, Casa now expects to produce revenue between $255 million and $270 million, far below its previous guidance range of $320 million to $350 million. The company expects to post a non-GAAP net loss per share between $0.15 and $0.25, compared to its previous forecast of a profit between $0.20 and $0.30. Both new guidance ranges missed analyst expectations by vast margins.
Including today's plunge, shares of Casa are now down about 66% year to date.