Aerohive Networks Inc (NYSE:HIVE) In Loss In First Quarter Results

Aerohive Networks Inc (NYSE:HIVE)

In its first quarterly results, Aerohive Networks Inc (NYSE:HIVE) has recorded a $9 million loss. On a per-share basis, the loss was 17 cents. When adjusted for restructuring costs and stock option expenses, the loss came to eight cents a share.

Despite the loss, the results were better than Wall Street had anticipated. On average, analysts had expected a 10 cent per share loss for the Milpitas, California-based firm.

Marginal revenue increase

In the same period Aerohive Networks Inc (NYSE:HIVE) recorded $36.4 million in revenues. This was also higher than estimates as revenues of $36.1 million had been expected.

“We’re pleased to deliver results at the high end of our guidance for revenue and exceeding our guidance for gross margin and earnings per share, made possible by the actions we have taken to improve our execution and operational efficiency,” said the chief executive officer and president of Aerohive Networks, David K. Flynn.

Subscriptions and services

The first quarter results of Aerohive Networks Inc (NYSE:HIVE) also showed that revenues from software services and subscriptions had grown compared to a year ago. In 2016’s first quarter, the revenues from this segment were $7.7 million while they were $9.5 million in the latest quarter.

GAAP (Generally Accepted Accounting Principles) Gross margin for 2017’s first quarter also rose to 67.2% against a figure of 66.8% that was recorded in 2016 for a similar quarter. Non-GAAP Gross margin for 2017’s first quarter also rose to 68.2% against a figure of 67.5% that was recorded in 2016 for a similar quarter. Aerohive Network’s loss on a non-GAAP metric was $4.1 million in 2017’s first quarter against a $6.2 million net loss in 2016 for a similar quarter.

Higher market capitalization

The results were warmly received by the market with shares rising by 10.24% on Thursday. More than one million shares were traded on Thursday compared to just a little over 5,000 shares that changed hands the previous day. The average daily volume is slightly above 160,000 for a firm that has a combined float of more than 50 million shares.

The appreciation in the share price has lifted the market capitalization of the company that specializes in designing and developing cloud-managed mobile networking platforms to slightly over $215 million.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.