Avaya Down on Warning, Job Cuts
Avaya (AV) was down 9.3% in early trading after the company lowered revenue estimates late Tuesday and said it would cut at least 3,000 jobs or 11% of its workforce.
Blaming a drop in orders as a result of a slowing economy, the communications equipment maker said it expects revenue for the third-quarter to fall 4% to 6% from the second quarter, but said EPS would roughly double the year-ago period's earnings of 11 cents a share. Analysts are expecting earnings of 32 cents a share, according to
Thomson Financial/First Call
.
Fourth-quarter revenue will be 4% to 8% lower, but EPS will be six times the year-ago figure, the company said.
Loading ...