Shares of IronNet (NYSE: IRNT) tanked in morning trading on Thursday as the cybersecurity company generated revenues of $6.6 million in fiscal Q2 versus $6.1 million in the same quarter last year. But this figure still fell short of analysts’ estimates by $0.94 million.
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Net loss in the second quarter widened to $0.28 per share from $0.25 in the same period last year while analysts were expecting a loss of $0.32 per share.
IronNet’s gross margin also contracted in Q2 to 62.3% from 70.1% in the same quarter of last year.
General (Ret.) Keith Alexander, Chairman, and co-CEO of IronNet commented on the results, “We encountered unexpected headwinds in our transactional business this quarter. To contain costs, we are undertaking a further restructuring of the company with the support of our new CFO Cameron Pforr.”
IRNT also withdrew its previously issued financial guidance for 2023 in light of the business restructuring and management transitions.
IronNet’s Management Restructuring
The company also announced the resignation of Co-CEO William Welch as a result of business restructuring.
Welch stated, “With costs in focus, we determined that it made sense to eliminate the co-CEO position.”
Moreover, the company appointed Cameron Pforr as the new CFO, who will replace current CFO James Gerber.
