Netro Corporation (Nasdaq:NTRO) on Tuesday preannounced results for the third quarter, warning investors that revenues will be half of last year's performance.
The company, which makes provider of fixed broadband wireless systems, estimated third-quarter revenues of $2.4 million to $3.5 million, versus $6 million in the same quarter of last year and $5.7 million in the second quarter of 2002.
The company refrained from revealing its profit expectations, but in the previous quarter it lost a net $18.5 million, or 30 cents per share, missing the average forecast by 5 cents.
"The revenue shortfall has been driven in part by weakness in recurring orders for our AirStar product line from existing customers, and the ongoing weakness in the telecommunications market in general and the CLEC market specifically," commented the company's chief financial officer, Sanjay Khare.
"In addition, none of the market catalysts for our AirStar product line, such as frequency licensing in China, a recovery in the Latin American economy and the roll-out of initial 3G networks have occurred," he added in a statement.
The company stands by its strategy of focusing on the Angel platform as the growth engine, Khare continued. "the Angel platform is targeted at large established incumbent telecommunications providers in emerging markets, looking to provide basic voice connectivity and high-speed data services. These carriers are more financially stable and face a greater demand for services making them more attractive for Netro in the long run."