Optical equipment manufacturer

Oplink Communications

(OPLK)

was down 19.5% in preopen

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trading after projecting a loss of 10 cents to 12 cents a share for the third quarter, below previous guidance and below analysts' expectations for a profit of 1 cent a share.

The company blamed economic conditions, which have slowed customer orders. Oplink last week cut 166 employees in the U.S. and is expecting further staff reductions in China through attrition.