DA Davidson expects Nimble Storage Inc NMBL to report a non-GAAP loss of $0.24 when the company reports its first-quarter results after the market close on May 24.
Analyst Mark Kelleher sees revenue of $86 million, representing an increase of 26 percent from last year. Region-wise, the analyst projects the United States to contribute about 80 percent of revenue, with EMEA at 13 percent and APAC at 7 percent, consistent with previous quarters.
"We expect Fibre Channel products to contribute around 30 percent of revenue, up from 26 percent of revenue last quarter, with ISCSI products contributing the remaining 70 percent," Kelleher wrote in a note.
Meanwhile, the analyst expect gross margin of 65.7 percent, down from 66.4 percent last quarter. Kelleher sees an operating margin of negative 22.8 percent, down from negative 10.7 percent, as higher investments in sales would hurt operating margins.
"Given the highly competitive storage system market, the level of investment required for Sales and Marketing to sustain top line growth, and the lack of upside to our 12–18-month price target, we are reiterating our NEUTRAL rating for Nimble Storage," Kelleher highlighted.
At the time of writing, shares of Nimble Storage rose 3.33 percent to $7.44, while the analyst has a price target of $6.50.
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