Austin-based Digital Turbine Inc. saw its shares dip in after-hours trading Tuesday after the company announced preliminary results for its fiscal fourth quarter that fell short of Wall Street expectations.
Digital Turbine said it expects revenue for its fiscal fourth quarter – which ended March 31 – of $23 million to $23.5 million. That is shy of the $26 million some industry analysts were projecting for the quarter.
Digital Turbine’s shares dropped more than 4 percent in after-market trading following the announcement. The company said it will release a full earnings report in June.
Digital Turbine CEO Bill Stone said company executives “believe that the issues that affected our financial performance in the March quarter are temporary in nature and are not at all reflective of growing demand for our products and services.”
Credit: American-Statesman Staff
Credit: American-Statesman Staff
"Despite our fourth quarter revenue increasing approximately 45 percent versus the same quarter last year on a pro forma basis, we expected more,” Stone said in a written statement.
He said the factors impacting the company's performance for the quarter were "primarily the result of a later-than-expected Samsung Galaxy S7 launch date and lower-than-anticipated slot count with one of our key North American carriers, as well as greater-than-expected seasonal softness in our core Appia business."
Digital Turbine, which distributes mobile applications to customers including Verizon and T-Mobile, moved its headquarters from Los Angeles to Austin in 2015.
The company said as of March 31, it had It had cash and cash equivalents on hand of about $11.3 million,
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