Avocent Hit on Outlook

The computer parts company slashes guidance, citing several factors.
By TSC Staff ,

Avocent

(AVCT)

shares were hammered Monday after the computer parts company slashed first-quarter revenue guidance.

The Alabama-based company said it now expects revenue of $73 million to 77 million in the quarter ending April 1. Previously, it forecast $96 million to $100 million, vs. $86.1 million in the year-ago period.

The consensus view of analysts is $98.9 million, according to Thomson First Call.

Avocent said lower sales were the result of a "number of factors", most notably the launch of its DSView 3 software and several new appliance products that occupied its sales staff, a deferred order from a large customer and greater-than-expected seasonal softness in the OEM market.

Shares were down $9.83, or 26.3%, to $25.24 in premarket trading.

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