Tumbleweed Communications Trampled After it Announces Earnings Shortfall

Tumbleweed Communications (TMWD Quote) warned before the bell of lower-than-expected fourth-quarter results, citing what analysts have of late been griping about: slower information technology spending.

The Redwood City, Calif., email and messaging provider also announced it was cutting about 20% of its staff and expects a one-time restructuring charge, of an undisclosed amount, in the first quarter of 2001.

And its shares tumbled to a new low on the news. They were down lately $6.75, or 67.5%, to $3.25 in preopen Island trading. They closed a $10 in Tuesday regular-session trading. ...