Avanex (AVNX) fell 13% after trimming third-quarter guidance Thursday, blaming a weak dollar and tough pricing talks.
For its third quarter ending this month, the Fremont, Calif., optical networking components maker expects to post a slight decline from second-quarter results. Back then, Avanex lost 11 cents a share on a pro forma basis on sales of $41.9 million and guided toward a flat third quarter sequentially.
But on Thursday, Avanex said it would lose more than 11 cents a share on revenue of around $41 million.
"Avanex continues to focus on improving its financial performance through the increased use of low-cost contract manufacturers, utilization of standardized product platforms, and consolidation of operational and administrative functions," said CEO Jo Major. "We have seen some operating pressures in the current quarter due to the deteriorating dollar/euro exchange rate and annual product pricing negotiations."
Late Thursday, Avanex slipped 21 cents to $1.45.