Covad Sees Lower Revenues, Restructuring Charge in Fourth Quarter
Covad Communications
(COVD)
said Tuesday it expects to record a fourth-quarter restructuring charge of $20 million, with revenue for the quarter below analysts' expectations.
The high-speed Internet service company, based in Santa Clara, Calif., expects fourth-quarter revenue of $60 million to $65 million, compared with $30.9 million in the same period last year. Seven analysts surveyed by
First Call/Thomson Financial
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expect the company to post fourth-quarter revenue of $76.7 million.
The company did not provide any earnings-per-share figures, but analysts on average are expecting a fourth-quarter loss of $1.34 a share, compared with a loss of 53 cents a share in the same period last year.
For 2001, Covad said it expects to record a loss before items of $450 million to $470 million on full-year revenue of $380 million to $390 million. Analysts are expecting full-year 2001 revenue of $527.13 million, and full-year 2000 revenue of $243.56 million.
Shares of Covad were off 44 cents, or 14%, to $2.63 in early trading on the
Nasdaq
Tuesday.
