CacheFlow Lowers Third-Quarter Revenue Guidance

CacheFlow(CFLO Quote - Cramer on CFLO - Stock Picks) said Thursday that its revenue for the fiscal third quarter won't meet previous expectations, and the company's shares took a beating following the announcment.

CacheFlow also said it was taking action to reduce its overall cost of operations, including "aggressively managing headcount" and bringing spending more in line with projected revenue.

In recent Nasdaq trading, the company's shares fell $2, or 11.1%, to $16.

The maker of Internet caching appliances now projects revenue of $20 million to $21 million for the quarter. Two analysts polled by First Call/Thomson Financial were calling for revenue of $43.1 million, well above the second-quarter total of $32.5 million.

While the company didn't specifically address earnings, the consensus estimate from nine analysts calls for a loss of 6 cents in the quarter, narrower than both the 9 cents CacheFlow lost in the second quarter and the 24-cent loss in the year-ago period.