Secure Computing Hit on Warning
A six-month slide in Secure Computing (SCUR) continued Tuesday following a warning that anemic government demand would leave second-quarter earnings below estimates.
San Jose, Calif.-based Secure said earnings in the three months to June 30 will be 5 cents or 6 cents a share on revenue of $21.7 million to $22 million. Analysts surveyed by Thomson First Call had been forecasting earnings of 9 cents a share on revenue of $23.7 million.
The stock, which flirted with $20 in early January, was recently fetching $6.48 on Instinet, down $3.45, or 35%, from its 4 p.m. EDT close.
Secure Computing, which sells firewall and other security appliances for computer networks, said federal government bookings were 40% below its target in the second quarter. The company described the shortfall as an "anomaly" and said it expects the segment to rebound in the current period.The company also previewed several positive developments in the quarter, including an 18% increase in sequential bookings, and noted its earnings could still double over last year's quarter. The reassurance couldn't stem the stock's double-digit pounding, a decline that resembles the hammering in other behind-the-scenes technology companies that have preannounced this quarter, such as Veritas (VRTS), Iona (IONA) and webMethods (WEBM).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV