Casa Systems unveiled its financial results for the third quarter (Q3) ending on September 30, 2023. The announcement, however, triggered a sharp decline in Casa Systems’ stock prices.
At the time of this publication, Casa Systems Inc stock (CASA) has witnessed a decline.
Casa Systems Inc
Current Price: $0.38
Change : -0.17
Change (%): (-30.73%)
Volume: 578.4K
Source: Tomorrow Events Market Data
Casa Systems Q3 2023 Financial Results
During Q3 2023, Casa Systems reported a revenue of $62.1 million. The gross margin stood at $25.9 million, inclusive of $7.9 million attributed to non-cash inventory obsolescence charges. The company’s GAAP net loss amounted to ($25.6) million, which encompassed a non-cash impairment loss of $4.7 million on their corporate headquarters building and non-recurring workforce charges of $2.3 million. On a non-GAAP basis, the net loss totaled $(20.2) million. The GAAP net loss per fully diluted share was $(0.26), while the non-GAAP net loss per fully diluted share was $(0.20). Adjusted EBITDA was reported at $(6.1) million. At the close of the quarter, Casa Systems held cash, cash equivalents, and restricted cash amounting to $49.7 million.
Looking ahead to the fiscal year 2023, Casa Systems anticipates revenues to fall within the range of $205 million to $225 million. Edward Durkin, the Chief Financial Officer, highlighted the third quarter’s accomplishments, citing a 7% increase in revenue compared to the previous quarter. This growth was driven by a $9.2 million surge in the Cloud Software business and a $4.9 million rise in the Access Device business. Nevertheless, the Cable business experienced a significant downturn of 37% from the prior quarter, a trend anticipated to persist into the fourth quarter as cable MSO’s address their existing capacity. Durkin emphasized that this decline is not indicative of market share loss, but is rather a consequence of delays in new purchases and delivery timing for backlogged orders across the industry.
Durkin shed light on the factors influencing the operating loss of $18.4 million for the quarter, which included a $7.9 million non-cash inventory reserve adjustment, non-recurring workforce charges of $2.3 million, and a $4.7 million non-cash impairment charge associated with the sale and lease back of the corporate headquarters, a transaction that concluded in October.
Durkin further remarked, “Due to delayed Cable MSO spending and Telecommunication customers deferring deliveries of backlogged Access Device orders to 2024 in order to manage their inventory levels, we are revising our full-year revenue guidance range to be between $205 million and $225 million. We also anticipate that Net Adjusted EBITDA will no longer be positive for the year.”
In light of these financial results, Casa Systems, Inc. is strategically addressing market conditions and refining its operational strategies to navigate the challenges ahead. Investors and stakeholders are closely monitoring the company’s initiatives as it strives to maintain its position as a leading provider of cloud-native software and broadband technology solutions.
