Ruckus Wireless Inc. (RKUS) Monday reported a decline in first-quarter profit that also missed estimates, hurt mainly by lower-than-expected revenues and higher expenses, reflecting delayed deployments by customers in Americas. Shares of the wireless-network equipment maker plunged 17 percent in extended trade on the Nasdaq.
Sunnyvale, California-based Ruckus' first-quarter profit dropped to $0.3 million or breakeven per share from $3.7 million or $0.03 per share last year.
Adjusted earnings for the quarter declined to $0.03 per share from $0.07 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.04 per share. Analysts' estimates typically exclude special items.
Ruckus, which went public last November, said revenues for the quarter grew 27 percent to $57.2 million from $45.0 million a year ago. Nevertheless, revenues for the quarter missed Wall Street consensus of $63.27 million.
Gross margins for the period improved to 67.1 percent from 63.2 percent last year, but operating costs increased to $38.6 million from $23.9 million last year.
Commenting on the results, Chief Executive Selina Lo said, "During the quarter, we did not experience any material change in the competitive environment. Instead, revenue was impacted by delayed deployments by several service provider customers in the Americas, as well as challenging market conditions in China."
Looking forward to the second quarter, the company expect adjusted earnings in the range of $0.03 to $0.04 per share on revenues of $61 million to $64 million. Analysts currently estimate earnings of $0.04 per share on revenues of $67.10 million for the quarter.
RKUS closed Monday's trading at $19.00, up $0.93 or 5.15%, on a volume of0.8 million shares. The stock slipped $3.18 or 16.74% in after-hours trade.
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