said Tuesday it is lowering its revenue expectations for the fourth quarter because of a decline in anticipated orders from
Netro said it expects revenues to be between $21 million and $22 million for the fourth quarter, significantly higher than the $7.7 million in the year-ago period. "This milestone would represent record quarterly revenues for Netro, but it is not as high as we had anticipated," the company said in a statement.
The broadband wireless access systems provider did not provide guidance for revised fourth-quarter earnings, but 11 analysts polled by
First Call/Thomson Financial
expect the company to break even for the quarter. Netro posted a loss of 17 cents a share in the same period last year.
Gross margins are expected to range from 18% to 20%, lower than anticipated due to the decline in base station shipments to Lucent. "As Netro's customers are getting to a more mature stage of their network build out, they are buying fewer base stations and more customer premise equipment (CPE) in order to increase commercial roll outs. We expect this trend to continue in 2001, resulting in ongoing gross margin pressure,'' the company said.
Additionally, the company said it expects to report lower revenues for 2001 due to "concerns about the slowing telecommunications build out and availability of vendor financing."
Shares of Netro fell $1.64, or 20%, to $16.88 in recent