Casa Systems wild ride on the Nasdaq took a sharp upward turn after the technology company reported a sales rebound in the second quarter.
The telecom tech company reported Q2 revenue of $52.1 million, meeting guidance. The performance was off significantly from the year-ago revenue haul of $68.7 million, but represented a strong 47% increase over Casa’s moribund first-quarter sales. Casa and other cable access tech vendors reported stagnant orders in Q1, as operators stood frozen in place, mulling migration to distributed access architecture (DAA) and converged cable access platform (CCAP) virtualization.
But orders are now coming in.
Casa’s stock price increased more than 15% Thursday after falling around the same percentage earlier in the week. That was after Raymond James analyst Simon Leopold downgraded the company, suspecting one of the large European companies now buying millions of dollars worth of DAA and virtualization gear and software from competitor Harmonic is actually major Casa client Liberty Global.
Casa CEO Jerry Guo told investors that he expects to see a continued sales uptick, “driven by capacity-related purchases by our cable customers and revenue recognition from wireless backlog.”
Guo said Casa is also establishing its own momentum with virtualization and DAA tech sales.
“In fact, our cable trials increased in the quarter by 53%, the vast majority of which was driven by existing and new consumer interest in our DAA, virtual CCAP core and new BDM products,” said Guo.