Forescout Technologies Inc (NASDAQ: FSCT) stock plunged 36.2% in the last week (October 7th to 11th; Source:Finviz) after Bragar Eagel & Squire, P.C. started investigating potential claims against the company on behalf of FSCT’s shareholders after the company announced preliminary third-quarter results. The investigation is regarding to check whether the company has violated the federal securities laws and engaged in any other unlawful business practices.
The stock slightly recovered over 3.6% on October 14th, 2019 (as of 11:18 am GMT-4 ; Source: Google finance). The company has generally given strong results on the back of demand for its product. However, for the third quarter, FSCT has significantly lowered its expectations for both revenue and profit, on the back of several deals that were pushed out of the third quarter along with the challenging macroeconomic environment in certain markets. However, as per the company, their deals are not lost to competitors and the company is working to finish it.
For the third quarter, the company now expects revenue to be between $90.6 million and $91.6 million, which is far below its original guidance range projected to be of $98.8 million to $101.8 million. The profit will also get affected due to reduced revenue in the third quarter. Non-GAAP (adjusted) operating loss is now expected to be in the range of $1.4 million and $1.6 million, down from previous guidance projected to be at a profit between $2.6 million and $3.6 million.
For the full year 2019, Forescout expects the revenue to be in the range of $365.3 million – $375.3 million, which representing year-over-year growth of 24% at the midpoint. Non-GAAP operating loss for FY 19 is expected to in the range of $15.6 million – $11.6 million. Non-GAAP net loss per share 19 is expected to in the range of $0.41 – $0.33 using approximately 45.8 million weighted shares outstanding
Moreover, during the third quarter 2019, the company has added approximately 110 net new logos. the company has added approximately 3.9 million devices under management, which brought the total of devices under management to 76 million. tTe company has closed the largest deal of the quarter with the United States government under the Comply-to-Connect (C2C) mandate. the company is also closing one of the largest Operational Technology deals in the history with the SilentDefense product. the company continues to have strong attachment of eyeExtend products, with 9 of the largest 10 land deals in the third quarter including at least one eyeExtend product.