Ellie Mae’s operating expenses will fall along the lines of $3 million to $4 million this year due to the outages it experienced at the end of March.  

And a strong portion of that impact will hit in the second quarter, Edgar Luce, executive vice president and chief financial officer of Ellie Mae, said during the company’s earnings conference call.

“The outage was caused by a combination of things. Hardware, internal software, third-party software and a surge in demand. And it was kind of a perfect storm of things coming together,” Jonathan Corr, president and chief operational officer of Ellie Mae, said.

As a result the company is looking at a little over $2 million in capital spending for the year, causing a bump in its capital spending guide it put out three months ago.

“Following this event we have decided to accelerate our investments to bolster our infrastructure and enhance our system capacity, reliability and security. While the outage will have an impact on expenses for the upcoming quarter and beyond to date we have not seen an impact to our sales or sales pipeline,” said Sig Anderman,
CEO and founder.

Ellie Mae (ELLI) reported a first-quarter revenue of $32.2 million compared to $30.9 million for the same period a year ago.