(LSE:BVC.L), which develops switches and routers for broadband data communications networks, warned yesterday that it will miss its revenue and profit forecasts for 2002.
The company blamed its problems on the tough conditions in the communications market, which it doesn't see improving before 2003, said chief executive Zvi Marom. Therefore, the company explained, it does not see itself meeting its 2002 guidance.
A month ago investment house Ultium Capital estimated that BATM would post sales of £86.5 million for the year 2002, and make a pretax profit of £2.5 million.
In its announcement, BATM clarified that it will meet profit predictions for the first six months of the year, even though sales will fall short by 20%.
Alongside its profit warning, BATM announced that its subsidiary, Telco Systems, signed a 3-year deal to sell $33 million worth of equipment to one of the Bell phone companies.
For 2001 BATM posted a loss of $267 million, mostly due to charges of $255 million on the acquisition of Telco Systems. Its proforma loss came to $1.2 million. BATM added that given the harsh market conditions, Telco is unlikely to meet the goals set out in its business plan for the year.