Network visibility company Gigamon reported weak second quarter 2017 revenues as the company continues to rebound from deferred product bookings and a comparatively slow period after some big customer wins last year.
However, the company is optimistic that growth will return in the second half of 2017, with two new major product releases: its HC3 platform, and inline secured socket layer (SSL) encryption and decryption offerings.
Gigamon claimed its HC3 visibility platform accounted for $2 million worth of bookings in the last two weeks of the quarter, with more opportunities in the pipeline representing close to $14 million worth of HC3 products alone for the remainder of this year.
It’s worth mentioning that its HC2 visibility products launched in 2014, and accounted for much of the company’s success leading into 2016. Gigamon continues to see more demand than expected within its HC2 products, resulting in $2.2 million of in-quarter product bookings in backlog, which also affected its revenue.
Similarly, the company said its SSL solution has generated “six-figure revenue” since it was released in June. “The significant increase in the attach rate allows our sales team to push ahead and up sell the full SSL software capability in the coming months,” company officials said during its quarterly conference call with investors.
Running the Numbers
For the second quarter, the company reported revenues of $69.1 million, compared to $75.1 million in the same period last year. Results were within its previously guided range of $69 million to $73 million.
Its GAAP net income in the second quarter was $34 million, or $0.91 per diluted share. The company reported non-GAAP net income of $4 million, or $0.10 per diluted share, compared to non-GAAP net income of $11.5 million, or $0.30 per diluted share, in the second quarter of 2016.
Looking to the third quarter, the company is expecting revenues to be between $84 million and $88 million, with very strong growth in the public sector.
Gigamon’s stock was up more than 8 percent at press time.
Earnings transcript provided by Seeking Alpha.