Boston, MA 04/25/2014 (wallstreetpr) – Gigamon Inc. (NYSE:GIMO) a leader in traffic visibility solutions is surging in early morning trading session at the back of impressive financial results for the first quarter. Revenue shortfall in the quarter was impacted by failure to materialize of a large transaction in the EMEA as well as other transactions that slipped to the second quarter
Business Highlights in Q1
The announcement of the financial results comes as securities lawyers at Dean & Lyons announce investigation as to the whether the company’s board of directors provided misleading statements regarding projected revenue for the quarter. Investigations will try to unravel whether any fiduciary laws were violated by the company’s management team.
Gigamon Inc. (NYSE:GIMO) specializes in the development of products that help to optimize control and visibility of network traffic in IT organizations. The company had projected its net revenue for the quarter to come in at between $31 and $31.5 million which was below previously issued guidance of between $34 and $35 million. Failure of a large transaction with current clients to materialize has been cited as the reason behind the experienced drop in revenue.
Some of the highlights in the first quarter saw the company being selected as the ‘Best of Interlop’ in the management category, as recognition for the company’s NetFlow Generation Application. NetFlow continues to gain wider acceptance as one of the most reliable with standard based approach for analyzing network and application issues.
NetFlow new versions come with user defined templates for analytics and conversation based metrics. Gigamon is set to showcase NetFlow Application at interlop Las Vegas a premier technology event.
Financial highlights
Despite the ongoing investigations, Gigamon Inc. (NYSE:GIMO) saw its net revenue for the quarter come in at $31.8 million representing a growth of 23% from last year’s net revenue of $25.8 million. GAAP gross margins for the quarter slightly dropped to 73% from a high of 79% reported for the first quarter of 2013.
GAAP net loss for the quarter came in at $8.2 million representing $0.26 per diluted share compared to a GAAP net loss of $1.2 million in 2013.
