Envivio had a drop in third quarter revenue and reported a larger net loss, compared to its Q3 results a year ago. The company said markets in Europe and Asia are lagging, and that in North America, customers are consolidating and have slowed their spending because of it.
Envivio CEO Julien Signès said, “Our results were negatively impacted by softening macro-economic conditions within EMEA, and customer consolidation in the U.S., delaying certain projects. Despite our disappointing financial results, we are encouraged with the continued positive reception of our product offerings by our customers, as evidenced by our significant wins of U.S. Tier 1 service providers in the quarter. These wins are laying a foundation for future growth and are a testament to the strength of our technology and comprehensive solutions.”
Signès declined to identify the Tier 1 customer, but the implication is that it is one of the top 5 in the U.S. In comments on the company’s call with analysts, he said orders from this customer represented more than 10 percent of Envivio’s Q3 revenue.
Envivio’s revenue in the third quarter of its fiscal 2015 was $9 million, compared to $11.5 million in the immediately preceding quarter (Q2 of 2015) and $11.7 million in the third quarter of its fiscal 2014.
The company said that led to a net loss of $5.4 million, of $4.1 million, or $0.15 per share, in the second quarter of fiscal 2015 and net loss of $2.9 million, or $0.11 per share, in the third quarter of fiscal 2014.
