Friday, October 10, 2014

Procera: Q3 Revenues Decline by 25% Y/Y

Sandvine is not the only DPI vendor seeing a slowdown in the standalone DPI market (see "Sandvine Receives $5M Expansion Order (CALA) "- here). Sandvine blames the long process of closing large deals and acceptance by some customers for delaying orders and revenue recognition.

Procera Networks also announced its preliminary results for Q3. The company says that "Revenue for the third quarter of 2014 is now expected to be approximately $16 million, a year-over-year quarterly revenue decline of approximately 25%. The ratio of bookings to revenue for the third quarter of 2014 is expected to be above 1.

The company expects the gross margin rate target range in low to mid-60%s for the third quarter of 2014. Revenue for the fiscal year ending December 31, 2014 is expected to be in the range of $70 million to $75 million, compared with $74.7 million for the year ended December 31, 2013".

This brings the first 3 quarters revenues to $51.1M, so the estimated revenue for Q4 is in the range of $19-24M, compared to $21.3M in Q4 2013. Shares of Procera went down by 19% in after-hours trading, following the announcement made after market close.

James Brear, President and CEO said: "Our second half of 2014 revenue performance is expected to be below the company's plans because of large opportunities not closing as quickly as originally anticipated. The customer prospects remain in our pipeline and we hope to close a number of them"
See "Procera Networks Announces Preliminary Third Quarter and Full Year 2014 Financial Update" - here.

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