Casa Systems, Inc. (NASDAQ:CASA) Q1 2019 Earnings Conference Call Transcript

May 01, 2019 • 05:00 pm ET

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Casa Systems, Inc. (NASDAQ:CASA) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Casa Systems' First Quarter 2019 Earnings Call. (Operator Instructions). Please note this conference is being recorded. I will now turn the conference over to Monica Gould, Investor Relations for Casa Systems. Ms. Gould, you may begin.

Executive
Monica Gould

Thank you, operator, and good afternoon, everyone. Casa released results for the first quarter of 2019, ended March 31st, 2019, this afternoon after the market closed. If you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website, at investors.casa-systems.com. With me on today's call are Jerry Guo, Chief Executive Officer; and Maurizio Nicolelli, Chief Financial Officer. This call is being webcast and will be archived on the Investor Relations section of our website. Before I turn the call over to Jerry, I'd like to note that today's discussion will contain forward-looking statements based on the business environment as we currently see it, and as such, does include certain risks and uncertainties. Please refer to our press release and our SEC filings for more information on the specific risk factors that could cause our actual results to differ materially from the projections described in today's discussion.

Any forward-looking statements that we make on this call or in the earnings release are based upon information that we believe as of today, and we undertake no obligation to update these statements as a result of new information or future events. In addition to U.S. GAAP reporting, we report certain financial measures that do not conform to generally accepted accounting principles. During the call, we may use non-GAAP measures if we believe it is useful to investors or we believe it will help investors better understand our performance or business trends. And with that, I'd like to turn the call over to Jerry.

Executive
Jerry Guo

Good afternoon, everyone, and thanks for joining us today. I want to start off for today by acknowledging that the first quarter of 2019 was one of our toughest quarters. We did highlight on our last call that we would likely see a slower first half for 2019 and that the first quarter in particular would likely be a very light quarter. However, our first quarter results were even below our internal expectations, with our results once again impacted by significantly lower spending by MSOs industry-wide, particularly on integrated CCAP hardware, and a slower run of wireless revenue than we anticipated. Revenue for the quarter was $35.5 million, a significant decline over the same period in 2018, resulting in our first quarterly loss in 10 years. Maurizio will discuss these results in greater detail in his remarks later on this call. We are extremely disappointed with these results, and I would like to provide detail on the factors that impacted our first quarter.

Before doing so, I do want to point out that notwithstanding the recent business performance, the number of new opportunities that have come our way in the form of trials and RFPs/RFIs is quite large. This