Avanex

(AVNX)

on Tuesday lowered its previous third-quarter and full-year 2001 projections, citing customers' lower spending on legacy systems.

The company, which manufactures fiber-optic-based products, anticipates third-quarter pro forma earnings of 2 cents to 3 cents a share, while seven analysts surveyed by

First Call/Thomson Financial

estimated earnings of 6 cents a share. In the same period one year ago, Avanex lost 4 cents a share.

For full-year 2001, Avanex expects pro forma earnings of 15 cents to 16 cents a share, up from the year-ago loss of 11 cents a share. Eight analysts surveyed by First Call/Thomson estimated the company would garner 25 cents a share for the year.

For full-year 2001, Avanex expects sales of $169 million, up from $41 million in the year ago period, and quarterly gross margins at roughly 46.5% as a result of the revision in revenue estimates.

Shares of Avanex, which is based in Fremont, Calif., closed at $23.94 a share in

Nasdaq

trading Tuesday, up from a 52-week low of $22.63 on Feb. 22.