reported fourth-quarter losses that were drastically wider than Wall Street's projections and said it plans to reduce its workforce by 10%.
The broadband equipment maker said it lost $65.5 million, or $4.12 a share, excluding certain noncash purchase acquisition expenses, much worse than the loss of $1.5 million, or 13 cents a share, in the year-ago period. Five analysts polled by
First Call/Thomson Financial
were calling for the company to lose 49 cents in the quarter. Tut attributed the shortfall to the continuing spending slowdown in the telecom industry.
Revenue dropped to $5.9 million from $10.6 million in the equivalent period last year.
warned on Jan. 8 that fourth-quarter results would be lower than originally anticipated. At the time, analysts were calling for the company to post revenue of $29.6 million, but Tut lowered its estimate from between $15 million and $18 million, to between $6 million and $7 million. Wall Street was expecting a loss of 32 cents a share.
Shares of Tut, which is based in Pleasanton, Calif., closed down 16 cents, or 2%, to $7.88 on the
, but dropped sharply to $6.31 in recent after-hours
The company said it increased its allowance for doubtful accounts by about $22.1 million, and recorded a $3.1 million loss to reflect the estimated impairment value of its equity investments in certain customers. The company also added a provision of $29.3 million to cover a loss on purchase commitments and abandoned products.
Additionally, Matt Taylor, the company's chief technical officer and a member of the board, and Tom Warner, the vice president of engineering, have left the company.