The tech company expects revenue to be approximately US$18.1mln to US$18.3mln, which is in the shallow end of the company’s prior expectations of US$18.1mln to US$19mln.
The California-based company fell below Wall Street revenue estimates of US$18.55mln.
Despite falling below expectations, the company did see a revenue increase compared with last year’s sales, which totaled US$13.41mln.
Gross margin for the second quarter is expected to be between 42% and 44%, falling below the company’s prior forecast of 46% to 48%.
Operating expenses for the second quarter are expected to be US$8.3mln to US$8.5mln, in line with company expectations of US$8.2mln and US$8.8mln.
The company develops application-specific semiconductors for the Internet of Things, or a network of smart devices. Its DataFlash product is designed for data-logging applications, such as health and fitness tracking and home automation sensing.
“We experienced a slower than expected ramp of DataFlash-L products targeted at smart home application markets in the quarter, which reflected the timing of ramps across the broader end-market as opposed to any customer specific issues; together with the growing Tier-1 revenue, we experienced temporarily less-favorable product mix and gross margin in the second quarter,” said CEO Narbeh Derhacobian.
The tech company plans to offer US$40mln worth of shares of its common stock in an underwritten public offering.
Underwriters will be granted a 30-day option to purchase up to an additional US$6mln worth of shares of Adesto’s common stock.
The net proceeds will be used in part to finance the company’s recent acquisition of Echelon Corporation.
Adesto signed a definitive agreement to acquire the networking platform developer in a US$30mln deal.
If the acquisition falls through, the proceeds will be used for general corporate purposes.
Shares of the IoT company fell more than 20% to US$6.70 in Monday afternoon trading.