Envivio Warns that its Q2 FY2013 Revenue Will be Significantly Below Previously Issued Guidance

Posted by Joe Zaller
Aug 13 2012

Video encoding and transcoding specialist Envivio, which went public on the NASDAQ exchange in April 2012, said that its expects revenue for its second quarter as a public company to be in the range of $10m to $11m.

This forecast is 35% to 41% lower than the bottom end of Envivio’s previously issued guidance of revenue in the range of $17m to $18m. At that it issued the previous guidance, the company also gave broad profitability guidance saying it non-GAAP net income / loss would be in the range of a loss of $460,000 to a profit of $720,000. The company also said at that time that it expected gross non-GAAP gross margins for the quarter to be in the range of 62% to 64%.

The announcement immediately sent the company’s shares down by more than 40% in after-hours trading.  The company’s stock is now down about 60% since its IPO less than four months ago.

In addition to being below its previously issued guidance, Envivio’s revised forecast is also 18% to 25% lower than its result for the previous quarter, when it posted a GAAP net loss of $2.2m on revenue of $13.4m.

“Our preliminary revenue results reflect a general slowdown in spending by our service provider customers, in particular in North America and Western Europe, which have been two key growth areas of the Company in the last two years,” said Julien Signès, president and CEO, Envivio. “During the second quarter, we did not see any changes to our competitive positioning, and our win/loss ratio in the multi-screen market remains consistent with prior experience. Despite this, we experienced a slowdown of major project implementations and a lengthening of sales cycles, which we attribute to the current global economic environment. We are disappointed in these results and are conducting a full review of our operations.”



Related Content:

Press Release: Envivio Provides Preliminary Revenue Results for Second Quarter Fiscal 2013

Envivio Beats Expectations in First Quarter as Public Company as Revenue Jumps 35 Percent 

Envivio Files for $85 Million Goldman Sachs Led IPO

April 2012 Envivio S-1/A filing (IPO Documents)

Envivio Closes $16.5 Million Fundraising Round

Envivio D/A Filing: Disclosed newly raised funds


© Devoncroft Partners. All Rights Reserved.


Comments are closed.

%d bloggers like this: