Shares of wireless LAN equipment maker Meru Networks (MERU) are unchanged in late trading at $8.02 after the company this afternoon said it will have a deeper-than-expected Q3 loss because of an acquisition, and said CEO Ihab Abu-Hakima will leave in the next six months.
Meru expects Q3 revenue of $23.2 million to $23.7 million, versus the $22 million to $24 million the company had previously cited, which is slightly above the average $23.12 million estimate on the Street.
The company expects a net loss per share, however, of 22 cents to 24 cents, excluding some costs, worse than a previously projected net loss of 17 cents to 23 cents. The Street has been modeling a 19-cent loss.
Abu-Hakima said he wished to let the board pick a leader suited to “lead the company into its next phase of growth.”
“I feel I have achieved my personal and corporate goals, and given the strong momentum at Meru, now is the right time to transition to a new CEO to drive the company to the next level,” he said.
The net loss now includes the cost of the company’s acquisition of Identity Networks, which was not factored in the prior forecast.
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