ONI Systems Plummets as it Warns of Wider Loss

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Updated from 8:14 a.m. EDT

ONI Systems

(ONIS)

was down 46.8% in midmorning after the optical network equipment provider said results for the rest of the year will fall below expectations.

In a release, ONI said it expects a third-quarter loss of 17 to 21 cents per share on revenue of $40 million to $50 million. Analysts were expecting a loss of 4 cents, according to Thomson Financial/First Call. Fourth-quarter revenue is expected to be $40 million to $50 million, compared with earlier forecasts of $85 million to $90 million, ONI said.

The company said it no longer expects to reach breakeven in the fourth quarter. Analysts were expecting a profit of 1 cent per share for the fourth quarter.

ONI said it will record $50 million to $60 million in charges in the third and fourth quarters for restructuring costs.