Traffic visibility company Gigamon reported weak fourth-quarter earnings today, as expected, and followed up by saying its first-quarter outlook is significantly lower than recent quarters’.
For its fourth quarter, Gigamon reported revenues of $85 million — in its expected range of between $84.5 million and $85 million stated in its pre-earnings announcement. The company’s originally guided range was between $91 million and $93 million.
On a conference call with analysts this afternoon, the company added that first-quarter revenues will be between $67 million and $70 million, compared with $67.2 million in the first quarter of 2016.
As with the fourth-quarter revenues, this lower number is driven by deferred product bookings and a comparatively slower period for the company after some big customer wins during 2016.
Fourth-quarter non-GAAP net income was $14.4 million, or 37 cents per diluted share. Analysts had expected 36 cents, according to Thomson Financial.
Gigamon shares were down 17 percent at $26.70 in after-hours trading.
CEO Paul Hooper highlighted that Gigamon picked up 126 new customers in the quarter, which was a record for the company. The company’s partnership with Amazon Web Services (AWS) contributed to some of those customer wins with more than 600 Gigamon customers actively using AWS. Looking into the new year, Hooper said the company plans to offer its services on Microsoft Azure and Google Cloud Platform as well.