UPDATE: Bank of America Lowers Meru Networks' PT

According to a research report published earlier today, Bank of America has lowered Meru Networks' MERU PT from $4.00 to $3.80. In the report, Bank of America explained, “Meru negatively preannounced Q1 revenue in the range of $19-19.5mn (midpoint of $19.25mn) ~14% below the Street's $21.5mn estimate. Product transitions, productivity of newly on-boarded sales staff and changes in key management positions created a perfect storm of challenges for Meru to overcome. We have adjusted our model to reflect the preliminary results, but given the limited disclosure, we will update our model more completely when the company publishes full results in a few weeks. We have adjusted our revenue and opex assumptions, and have reduced our FY12/13 revenue estimates from $98.4/$122.4 to $84.8/92.4mn respectively.” Bank of America maintains its underperform rating on Meru Networks, which closed yesterday at $4.21.