Forescout tumbles on profit warning

ForeScout Photo: PR

Forescout Technologies CEO Michael DeCesare: Q3 results were impacted by extended approval cycles which pushed several deals out of the third quarter.

The share price of Israeli cybersecurity company Forescout Technologies (Nasdaq: FSCT) has slumped by 35% in New York following a profit warning released by the company.

In an announcement of preliminary results for the third quarter, Forescout stated: "Total revenue for the third quarter is expected to be in the range of approximately $90.6 million - $91.6 million, compared to the company’s prior guidance range of $98.8 million - $101.8 million. GAAP operating loss for the third quarter is expected to be in the range of $18.2 million - $17.8 million. Non-GAAP operating loss for the third quarter is expected to be in the range of $1.6 million - $1.4 million, compared to the company’s prior guidance range for a Non-GAAP operating profit of $2.6 million - $3.6 million."

Forescout, which provides enterprise security and control systems, was floated on Nasdaq in late 2017 at $22 per share. In today's session, the share price is at $25.50. Company CEO Michael DeCesare said, "Q3 results were impacted by extended approval cycles which pushed several deals out of the third quarter. This was most pronounced in EMEA against the backdrop of a challenging macro-economic environment. These deals were not lost to competitors and we are working to get them over the finish line.

"The fundamentals of our business remain strong and we are confident in our opportunity ahead."

Published by Globes, Israel business news - en.globes.co.il - on October 10, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

ForeScout Photo: PR
ForeScout Photo: PR
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