Data storage outfit
lowered its first-quarter guidance for the second time Thursday, saying it now expects a wider loss and lower revenue than
predicted just a month ago.
The company is now planning to report a loss, before items, of 4 cents to 7 cents a share on revenue of $62 million to $64 million. When McData first took down its projections in March, the company predicted a loss of 2 cents to 4 cents a share and a top line of $73 million to $78 million. Originally, the company had been expecting to break even, or even post a profit of as much as 2 cents a share for the quarter.
McData attributed the even lower guidance to additional order reductions from its largest customer. The company plans to report its results on April 18.
In a press release, the company said the revenue expectations "suggest that McData is being adversely affected, in part, by delayed IT spending in the high-end sector of the storage market."
The Class A shares of McData were dropping 23.2% to $9.35 in Instinet trading after the closing bell. The stock ended the regular session at $12.17.
Not surprisingly, other storage stocks were caught in the downdraft, though they weren't hit as hard as McData.
was losing 3.4% to $26.60, and
was lower by 5.2% to $30.50.
was off 2.3% to $19.24.
, McData's former parent, was falling 3.1% to $11.35.