BroadSoft tanks on Q3 miss, light guidance

|By:, SA News Editor

BroadSoft (BSFT) shares tank 18.1% AH after the company missed expectations in Q3 and issued disappointing guidance.

Gross margin fell by 5% to 75% in Q3, while opex grew 36% Y/Y to $35M, considerably outpacing revenue growth of 7%.

Management expects revenue in Q4 of $47M-$53M (vs. consensus of $54.9M) and EPS of $0.34-$0.49 ($0.51).

The situation may have been foreshadowed by what happened to peers AudioCodes and Sonus, which slumped last week on lighter-than-expected earnings/guidance after significant run-ups.

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