Shares of Ikanos Communications (IKAN - Get Report) were among technology's losers Thursday, plunging 33% after the maker of broadband-network-equipment chips warned that its third- and fourth-quarter revenue will miss expectations.
The company estimates third-quarter revenue of $36 million to $37 million, down from an earlier view of $40 million to $43 million. Analysts project revenue of $42 million. For the fourth quarter, the company sees revenue of $24 million to $26 million, substantially below the $43.3 million that analysts project.
"While we had orders for our fourth-generation and newly released fifth-generation chipsets in Q3, our shipments of these solutions were limited due to product delays and manufacturing constraints," Ikanos said. "Looking to our fourth quarter, we believe that revenue will be affected due to general weakness in the overall communications sector and some deployment delays." Shares were trading down $3.66 to $7.28.
Intermec (IN - Get Report) also slashed its revenue forecast, sending shares down 14%. The company expects to post third-quarter revenue of $192 million to $196 million, compared with its earlier forecast for revenue of $230 million to $240 million. Analysts polled by Thomson First Call project revenue of $237.2 million."The company's revised guidance reflects an estimated decrease of its systems and solutions revenues of about 20% and a decrease of service revenue of about 5% over the comparable prior-year quarter," Intermec said. Shares were trading down $3.69 to $23.62.