NEW YORK (TheStreet) -- Gigamon (GIMO) 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.
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.