Updated from 9:19 a.m. EDT

Proxim ( PROX ) shares were slammed Wednesday after the wireless network equipment maker reported preliminary first-quarter earnings well below its guidance.

The Sunnyvale, Calif.-based company said it expects revenue of $25 million to $27 million, compared with the $37 million it had forecast in January.

Proxim also forecast an operating pro forma loss of 4 cents to 6 cents a share, compared with its previous guidance calling for a loss of 1 cent to 3 cents a share.

The consensus estimate of analysts was for revenue of $37 million and a loss of 2 cents a share, according to Thomson One Analytics.

Shares fell 28 cents, or 16%, to $1.46.

The company attributed the revisions to lower-than-expected carrier revenue and problems related to product transition. Proxim reports official results April 27.

The company, which specializes in wireless networking equipment for Wi-Fi and wide area networks, said: "Although we are disappointed with this revenue performance, we believe that the seasonal and product transition issues are addressable. We are encouraged by our strong end-of-quarter order backlog and effective cash management."

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