Gigamon Inc (NYSE:GIMO) shares dipped over 30% in the pre-market trade following the company’s lower revenue outlook for the second quarter, announced Tuesday. For the second quarter ending June 28, the company is expecting revenue of $34.5 million to $35 million, a drop from previous guidance of $38 million to $42 million. Gross margin estimates for Gigamon remains the same.

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Analyst’s drop ratings and price target

Needham & Company has reduced its rating from Strong Buy to Buy with a price target of $20.00 ($34 previously), in a note issued on Wednesday. Analyst Alex Henderson believes that the preview of the second quarter results offered by Gigamon Inc (NYSE:GIMO) did not talk much in detail on the numbers.

“With no more detail or explanation, we are forced to materially reduce revenues to reflect the back-to-back pre-releases and management’s stated goals of significant spending to support future growth,” Henderson added.

Apart from Needham & Company several other analysts assigned ratings to the stock recently. William Blair analysts dropped the ratings on the stock from Outperform to Market perform in a research note on Wednesday. Bank of America analysts downgraded the share to Underperform in a research note to the investors on Wednesday. Separately, analysts at Credit Suisse lowered their price target on shares from $25.00 to $19.00. Out of the total, one analyst has assigned Sell rating on the stock, five have given hold rating and two have issued Buy rating to the stock. Gigamon Inc (NYSE:GIMO) has an average rating of Hold and an average price target of $27.48.

Gigamon shares down

For the first quarter, the company posted earnings per share of ($0.07) in line with the Thomson Reuters consensus estimate of ($0.07). Revenue for the company came in at $31.80 million for the quarter, compared to the consensus estimate of $31.30 million. For the corresponding quarter, last year, the earnings per share for the company came in at $0.02. Revenue increased 23% on a year over year basis.

The company is slated to report its second-quarter results after the close of trading on July 24. Gigamon Inc (NYSE:GIMO) came up with an IPO on June 12, 2013 at $19, but is set to open on Wednesday at a new all- time low. In after-hours trading Tuesday, the shares were down 28% to $13.