Extreme Networks

(EXTR) - Get Report

on Thursday became the second networking gearmaker to warn this week of an order slowdown.

The Santa Clara, Calif., communications equipment company posted an unexpected third-quarter loss and warned of a fourth-quarter sales shortfall. Its shares slipped in late trading.

For its third quarter ended March 27, Extreme lost $1.3 million, or a penny a share, compared with a loss of $1.1 million, or a penny a share, a year ago. Excluding a cost linked to an


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technology deal, the latest-quarter profit was a penny a share.

That's well short of the nickel-a-share profit analysts surveyed by Thomson First Call were looking for. Latest-quarter revenue also was light, rising 3% from a year ago to $92 million but coming up $10 million short of the Wall Street target.

"Much of our business remained on a solid growth path during the third quarter," said CEO Gordon Stitt. "Our revenues outside of Japan grew by 14% compared to the third quarter a year ago. However, continued weakness in our Japanese business combined with longer than expected sales cycles across our business generally led to us not achieving our goal of recording $100 million or more in revenue this quarter."

The company said gross margin fell 2 points sequentially as a result of lower volumes, start-up costs related to new products and shifts in regional and channel mix.

For its fourth quarter ending in June, Extreme expects to post revenue of $93 million to $98 million, due to "typical seasonal demand patterns and increased contribution from newly introduced products, including the BlackDiamond 8800." Analysts were expecting $106 million.

Extreme's warning comes less than a week after similar comments from rival


( FDRY).

Late Thursday, Extreme dropped 2 cents to $5.