This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

What's Behind Gigamon (GIMO) Stock's Drop Before the Bell?

NEW YORK (TheStreet) -- Gigamon (GIMO - Get Report) is plummeting before market open Tuesday. After the bell a day earlier, the network traffic software developer warned of lower-than-expected results in its first quarter. 

Before the bell, shares had skidded 23.7% to $20. 

The communications company said it expects revenue between $31 million and $31.5 million for the three months to March, below previous guidance of $34 million to $35 million.

Analysts surveyed by Thomson Reuters had forecast $34.81 million in revenue.

Must Read: Will This Coverage Initiation Help MannKind (MNKD) Stock Today?

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

In a statement, the Milpitas, Calif.-based business said the revenue shortfall was due to the cancellation of a large transaction from an existing EMEA customer. Additionally, several other transactions have slipped into the second quarter. 

As a result of the cancellation of the EMEA contract, Gigamon expects to record a $2.3 million excess inventory charge.

"While we are disappointed in these preliminary results, we remain confident in ourbusiness strategy and the market opportunity," said CEO Paul Hooper in a statement. "We did not see any material change within the competitive landscape during the first quarter and we are encouraged by our initial assessment of our second quarter pipeline."

Gigamon is due to report its first quarter after market close on Thursday, April 24.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

WATCH: Shares of Gigamon Plummet on Weak First-Quarter Revenue Forecast

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GIMO $22.54 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs