Redback Networks Lowers Guidance, Cuts 12% of Workforce

Redback Networks (RBAK) expects revenue in the first quarter to fall well short of Wall Street's projections, and the company disclosed plans to eliminate about 150 employees, or 12% of its workforce, as a result of the weakened global telecommunications market.

For the first quarter ended March 31, the networking concern forecast revenue of $85 million to $90 million, well short of the consensus estimate of $132.4 million. The San Jose, Calif., company had a top line of $34.2 million in the year-ago period.

Excluding acquisition charges, stock compensation costs and restructuring and inventory expenses, the company expects to post a loss of about 15 cents a share. Analysts are looking for a profit of 4 cents, according to Thomson Financial/First Call. The company earned a penny a share last year.

Shares of Redback closed the regular Nasdaq trading session at $11.70, down $1.38 on the day, before being halted for after-hours trading.

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