Sunday, November 06, 2011

March Networks Lower Q2 Revenue Guidance

The intelligent IP video manufacturer will realize revenues of US$22 million, compared to $27.5 million in the second quarter of fiscal 2011.

It has been undergoing a review of strategic alternatives since June amid analyst comments and continued multi-million dollar losses. Morgan Keegan is serving as the financial adviser.

"The company believes that delays in order intake and revenue declines in the first half of fiscal 2012 are attributable to normal quarterly revenue volatility and the negative impact of the ongoing global macro-economic situation, particularly in the banking sector," stated Peter Strom, March's chief executive.

"We expect this situation to improve in the second half of the year based on our growing pipeline of activity and improved visibility with some of our largest customers."

March did not provide guidance for Q2 in previous releases, but said in fiscal 2012 it expects profitability, "double-digit revenue growth" and gross margin of 47 per cent to 50 per cent.

The company posted a net loss of $3.8 million and revenue of $102.8 million in fiscal 2011. The year before, its net loss was $32.5 million and revenue $86.6 million.

Separately, March announced an existing "global retailer" customer bought $16 million worth of hybrid network video recorders.