Sycamore Slumps After Pruning Outlook
Shares of
Sycamore Networks
(SCMR)
fell hard Monday after the company said that lower-than-expected orders from one of its major customers has forced it to cut its guidance for the fiscal third quarter.
The Chelmsford, Mass., networking-equipment maker now expects third-quarter revenue of approximately $21 million, well below both the $41.5 million in the second quarter and the $45.68 million target analysts are looking for. Sycamore said it expects to report final third-quarter financial results at the end of May.
"We are disappointed with our third-quarter revenue level, which reflects the challenges and unpredictability associated with a highly concentrated customer base," said CEO Daniel Smith. "We remain focused on expanding our customer base, and we believe our value proposition will continue to resonate with current and prospective customers as demand for agile bandwidth increases."
Sycamore was dropping 48 cents, or 12.8%, to $3.26. Among its networking rivals,
Nortel
(NT)
was down 1.8%,
Motorola
(MOT)
dipped 0.2%,
Alcatel-Lucent
(ALU)
was flat, and
Cisco
(CSCO) - Get Report
tacked on 0.1%.