Company sees Q4 EPS of $0.35-0.37 (Guidance was for $0.36-0.38) vs $0.37 Capital IQ Consensus Estimate; sees revs $84-85 mln (Guidance was for $91-93 mln) vs $92.24 mln Capital IQ Consensus Estimate; sees Non-GAAP Gross Margins of 83-84% (Guidance was for $82-83%)
"We are disappointed our fourth quarter revenue was below our prior guidance, but we are pleased with our overall financial performance in 2016, our second consecutive year of 40 percent year-over-year revenue growth...Fourth quarter revenue fell short primarily due to lower than expected product bookings in our North America West region, as several significant existing customer accounts deferred purchasing decisions into 2017."
"Our business remains fundamentally strong with our performance in 2016 demonstrating that we continue to capture market share with our leading technology, solutions and partnerships. Specifically, in the fourth quarter we saw:"
- A record 126 new customer accounts.
- The successful launch of the co's smaller form-factor new GigaVUE-HC1 product, specifically designed to create opportunities with new customers. In the quarter, 30 percent of the customers for the HC1 were new Gigamon accounts.
- Signing of the co's first Fortune 1000 customer for the Amazon Web Services solution it launched in November.
"Looking ahead to 2017, we are convinced this is an exciting market and we remain focused on the delivery of innovative products for the enterprise, service provider and federal markets. We will continue to invest in sales, marketing and research and development to capitalize on our opportunities in security, mobility and the cloud"
Gigamon gets crushed -18% on guidance; trading down near $38 after-hours. Next major area of support near June's breakout. This could be a foreshadow for darling stock NVDA IF they ever miss/soften their guidance.
This is why you should NEVER buy a stock based solely on analyst suggestions.