Shares of Imperva (NYSE: IMPV) are getting crushed, trading down 34 percent to $33 after reporting disappointing first quarter preliminary figures.
The company expects to report a loss of $0.40 to $0.44, which is worse than the analyst forecast loss of $0.35. Imperva had previously guided a first quarter loss in the $0.33 to $0.37 range.
Revenue was originally guided in the $36-37 million range, but the company now expects revenues of $31 to $31.5 million versus analyst estimates of $36.7 million.
Preliminary non-GAAP results exclude stock-based compensation and acquisition-related expenses. The company will provide detail on stock-based compensation and acquisition related expenses on our Q1 earnings conference call.
“Based on our preliminary analysis, our first quarter results were primarily impacted by extended sales cycles on deals over $100,000, which led to delays in receiving anticipated orders from customers, particularly in the U.S., which resulted in lower than expected revenue for products,” said Imperva President and CEO, Shlomo Kramer.
The executive continued to say, “While our overall win rates remained consistent during the quarter, the extended sales cycles resulted from a combination of intensifying competition for large orders, which resulted in additional review and approval cycles, as well as sales execution challenges in the U.S. We are taking steps to address these issues. We are also continuing to analyze the factors that impacted our first quarter results, and consider additional steps we may take to address them and how they may impact our outlook for the full year. We expect to provide updated guidance during our regular earnings call.”
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