NEW YORK (TheStreet) -- Procera Networks (PKT) dropped 20% to $12 a share in morning trading on Tuesday after the company announced that its preliminary revenue and bookings results for the fiscal year and fourth quarter that ended on Dec. 31, 2013 came in below the estimates issued by the company on Nov. 4, 2013.
The revenue for the fiscal year is expected to fall in the range of $74.1 to $74.6 million, or a year-over-year revenue growth of 24 to 25%, vs. the company's initial expectation of at least 30% annual revenue growth. The revenue for the fourth quarter is expected to fall in the range of $20.9 million to $21.4 million, or year-over-year quarterly revenue growth of 26 to 29%.
Bookings for the fourth quarter and fiscal year are expected to be approximately $22.5 million and $79 million, respectively. The Fremont, Calif.-based company also expects to meet its previously stated gross margin target range for the fourth quarter.
"Our fourth quarter performance is below the company's previous financial outlook primarily because of reduced orders from the U.S. Cable market that we believe reflects uncertainty and potential consolidation in that market. While we are disappointed by our total revenue performance, our growth drivers are intact and our competitive position remains strong," said Procera Networks President and CEO James Brear. "We plan to provide more perspective on our results during our upcoming earnings release and conference call."
TheStreet Ratings team rates Procera as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: