Redback Networks Lowers Guidance, Cuts 12% of Workforce

Redback Networks (RBAK Quote) 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.