was the worst performing stock on the
New York Stock Exchange
Friday afternoon as investors bailed out after a revenue warning.
The Andover, Mass., network company expects revenue in the quarter ending April 3 to be $85 million to $90 million, reflecting a decline in service revenue and pricing pressures. It cited "recently intensified competitive activity in a market environment that remains challenging."
Analysts surveyed by Thomson One Analytics were forecasting revenue of $101.1 million and a loss of 3 cents a share. Enterasys' stock was recently down 67 cents, or 24%, to $2.40 on the Big Board.
Specifically, revenue was crimped by deal-specific pricing pressure, delays in various government budget cycles, and sales execution issues that it said were previously addressed.
"We remain committed to our goal of achieving profitability in the second half of 2004, and given this lower revenue base we are further reducing our cost structure in order to lower our quarterly break-even point by at least $10 million," the company said.