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Compellent Technologies, Inc. (CML) moved nearly 25% lower on Thursday after reducing its first quarter revenue guidance from $35-37 million to $31-32 million. The decrease was attributed to seasonality, which had more of an impact on the company this quarter than in previous quarters, as well as changes made to their sales organization and delayed orders.

Despite the sharp move downwards, CEO Phil Soran remains upbeat about the company’s continued growth. However, some analysts believe that its failure to meet guidance will damage its credibility for several quarters. This led to at least one downgrade from a Buy to a Neutral by Merriman analyst Alex Kurtz.

Still, some investors see the drop as a buying opportunity, as delays in Q1 could increase sales in Q2 higher than anticipated. After all, ThinkEquity upgraded the company to a Buy just a few days ago after its channel checks indicated the company’s “new customer wins are healthy and its pipeline is strong.”

In the end, this may be a company to watch going into the second quarter, especially after today’s large drop on the news.

 

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