What happened
Shares of Casa Systems (CASA +0.00%) have popped today, up by 23% as of 11:40 a.m. EST, after the telecommunications software company boosted its revenue guidance for fiscal 2019. The company also announced a CFO transition.
So what
Revenue for fiscal 2019 is now expected to be in the range of $275 million to $280 million, up from its prior outlook of $255 million to $270 million in sales. Casa expects to "meet or exceed" its forecasts for gross margin, adjusted EBITDA, and net loss per share. The tech company had previously said gross margin for 2019 should be 50% to 60%, adjusted EBITDA is expected to be breakeven to $10 million, and adjusted net loss per share is forecast to be $0.15 to $0.25.
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CFO Maurizio Nicolelli, who has been on the job for just a year, is stepping down to pursue a CFO position at a company in another industry. Nicolelli will stay on through the end of the month to ensure an orderly transition, and Casa notes that he is not leaving due to any issues with the company's accounting practices or financial statement disclosures.
Now what
"I am pleased to have been part of delivering a good quarter for Casa," Nicolelli said in a statement. "While I will miss the team here as I leave to pursue an opportunity that I feel is good for my career and for my family, I know that I am leaving behind a strong financial organization. I look forward to hearing about Casa's future successes."
The company will retain an executive search firm to seek a permanent replacement, with exec Scott Bruckner serving as interim CFO in the meantime. Casa will report full financial results for the fourth quarter and fiscal 2019 on Feb. 20.
