Shares of data storage company Compellent Technologies Inc. plunged Thursday after the company said its first-quarter revenue will fall short of Wall Street estimates.
Compellent said late Wednesday that it expects to report revenue of $31.5 million to $32 million for the quarter ended in March. That's up 12 percent to 14 percent over the same quarter a year ago.
But analysts, on average, expected $36.4 million, according to Thomson Reuters.
In a statement, CEO Phil Soran said revenue dipped more than the seasonal norm for the first quarter because of a reorganization of the company's sales group and delays in large orders.
He added, "We remain positive about the outlook for Compellent's continued growth."
In a client note, Pacific Crest analyst Brent Bracelin kept an "Outperform" rating on the company's stock but said the shortfall was the result of "missteps in execution" on managing orders.
Compellent shares were down $4.28, or 2 percent, to $13.28 in afternoon trading. The stock has traded between $9.94 and $24.95 over the past year.
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