Digital Lightwave Plummets on Warning

Author:
Publish date:

Optical networking company Digital Lightwave (DIGL) was down 39% in preopen Instinet trading after it said late Tuesday it would post a loss of 9 to 10 cents a share before charges, on revenue of $8.3 million to $8.7 million. Analysts expect a 19-cent profit.

The company blamed weakness in telecom spending and a soft overall economy, which combined to hurt sales in a critical quarter.

The company said it will cut costs by 15% to 20% in light of the lower sales, but did not give details.