Converge Technology Solutions (OTCQX:CTSDF) dropped over 14% after the IT & cloud solutions provider said it expects lower-than-anticipated results for the third quarter of 2024.
Based on preliminary estimates, the company now expects revenue to be in the range of C$630M to C$631M, down from previous guidance of C$636M to C$658M, while adjusted EBITDA is seen between C$31.8M to C$32.3M vs. C$43M to C$47M previously.
That would imply a year-on-year decline in quarterly revenue from C$710.1M recorder in the third quarter of 2023.
“Q3 revenue was impacted by adverse macroeconomic conditions as certain customers delayed project spend as timelines shifted into the fourth quarter of 2024 or potentially the next fiscal year. Compared to Q3-2023, Q3-2024 revenue declined due to lower demand in North America for data center, networking, and storage solutions whereas Q3-2023 included a period of abnormally strong backlog fulfillment,” the company said in a statement.
Converge (OTCQX:CTSDF) will release its complete financial results for the third quarter along with an updated financial outlook for the fiscal year on November 12, 2024.
