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IronNet (NYSE:IRNT) watched its shares plummet by more than 47% in pre-market trading Thursday after the cyber-security technology company said two of its top executives would step down following what one analyst called “disastrous” quarterly results.
Prior to the start of trading, IronNet (IRNT) co-Chief Executive and Chairman Keith Alexander said that his co-CEO, William Welch, and Chief Financial Officer James Gerber, would leave the company, and that IronNet would also cut a total of 35% of its workforce, or about 110 jobs.
Welch will not be replaced, and Alexander will serve as IronNet’s (IRNT) sole CEO. Alexander said in a statement that “experienced software and cybersecurity executive” Cameron Pforr will become IronNet’s (IRNT) new CFO.
Alexander said the moves were being made after IronNet (IRNT) saw “unexpected headwinds in our transactional business this quarter.” Alexander said IronNet (IRNT) would also withdraw its previously issued forecasts for its 2023 fiscal year.
The announcements came as IronNet (IRNT) reported a loss, excluding one-time items, of $20.6M on sales of $6.6M. During the same period a year ago, IronNet (IRNT) lost $17M in the same quarter a year ago, on $6.1M in sales.
IronNet (IRNT) also reported annual recurring revenue of $26.5, which while up from $24.1M a year ago, fell short of Wall Street analysts’ expectations of approximately $32M. BTIG analyst Gray Powell said the combination of events led him to cut his rating on IronNet’s (IRNT) shares to sell from neutral, and said the is “no visibility” going forward regarding the company’s prospects.
“Even if IronNet (IRNT) addresses liquidity issues, investor are left with a declining business that is nowhere near profitability,” Powell said, in a research note.
Wall Street analysts have a consensus hold rating on IronNet’s (IRNT) stock, while Seeking Alpha authors, and Seeking Alpha’s quant system, which regularly outperforms the stock market, give IronNet (IRNT) a rating of strong sell.
Image and article originally from seekingalpha.com. Read the original article here.