Revenues came in under expectations, with net loss coming in at US$8.5 million on US$81.8 million in revenues.
Casa Systems (NASDAQ:CASA), broadband and 5G infrastructure provider announced lower-than expected revenues for the third quarter. Citing lower large order volume and cable spending, the company is diversifying its business model to new market segments in wireless and fixed telecom. The company projected gross margins between 50 and 60 percent for its fiscal 2019 reporting.
As quoted in the press release:
“While our access device business was 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 Jerry Guo, Casa’s President and CEO. “During the quarter, while we saw increased appetite for spending from our cable customers, timing for closing certain larger orders was more protracted than what we have seen previously. And, in our wireless business, while we continue to build our backlog, we saw a delay in revenue recognition due to new features that were requested to be added to a product associated with one of our larger purchase orders. Although our third quarter revenue was lower than expected, our overall business became diversified as half of our revenue came from our cable business with the remaining revenue split between our wireless and fixed telecom segments. This diversification indicates progress toward transforming the business while providing more stability in our revenue base in the future.”
Maurizio Nicolelli, Casa’s CFO added, “During this period of slower cable spend and wireless delays, we continued to manage our gross margins and operating expenses. Moreover, integration with NetComm is progressing well and we successfully executed on the first phase of cost synergies as we are tracking very well to achieving our anticipated annualized $7 million to $8 million of synergies within twelve months post-closing.”