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Nutanix Plunges as Supply Chain Challenges Impact Outlook -Breaking


© Reuters.

Sam Boughedda — Shares of cloud computing firm Nutanix Inc (NASDAQ:) Trades halted Wednesday due to extended trading after the company said that increased delays in supply chains with hardware partners have impacted its outlook.

An adjusted loss per share was $0.05, on revenues of $403.7 million. That’s higher than the forecasts of a loss $0.22 per share for revenue of $397.88 millions.

“Our third quarter reflected continued solid execution, demonstrating strong year-over-year top and bottom line improvement,” said Rajiv Ramaswami, President, and CEO of Nutanix.

The company expects to see fiscal fourth quarter revenue of between $340 and $360 millions, which is below its $439.5 million forecast. The company expects to see revenue of between $1.535 billion-$1.555 billion for fiscal 2022. This is also below the forecasts.

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Nutanix stock plummeted 28% in reaction.

“Late in the third quarter, we saw an unexpected impact from challenges that limited our upside in the quarter and affected our outlook for the fourth quarter. Increased supply chain delays with our hardware partners account for the significant majority of the impact to our outlook, and higher-than-expected sales rep attrition in the third quarter was also a factor,” added Ramaswami.