were down sharply at the opening Friday after the company announced that it would miss earnings estimates by more than 20 cents a share.
Overnight Xircom, which develops technology to connect mobile phones to corporate computer networks and the Internet, announced that its second-quarter earnings would be about 30 to 35 cents a share. Wall Street had forecast earnings of 56 cents a share based on a survey conducted by
First Call/Thomson Financial
The announcement sent Xircom's stock into a tailspin, with the shares down 3 7/16, or 10%, to 37 9/16 after reaching a session low of 33 5/8.
The Thousand Oaks, Calif.-based company also said that revenue for the quarter would total between $108 million and $110 million, also lower than previously expected.
"The first half of the quarter got off to a slow start in our access card business due to an extended Y2K freeze on notebook rollouts at several of our large enterprise customers,'' Dirk Gates, Xircom chairman, president and chief executive officer, said in a statement.
Gates said the company was now back on track and was experiencing strong demand for is new products.