Outlook Deflates Wind River

The company guides lower for the third quarter.
Author:
Publish date:

Shares of

Wind River

(WIND)

dropped sharply after hours Tuesday, on news that the software vendor expects sales and earnings in the third quarter to fall short of expectations.

In recent trading on Inet, shares were off $1.23, or 7.7%, to $14.66.

The Alameda, Calif., company said late Tuesday that it posted second-quarter revenue of $66.7 million -- a 12% increase over the same quarter a year ago. Net income in the July quarter was $5.7 million, or 6 cents a share. A year ago, the company earned $3.3 million, or 4 cents a share.

Excluding various items, Wind earned $6.3 million, or 7 cents a share, in the latest quarter.

Analysts polled by Thomson First Call were looking for a 6-cents-a-share profit on revenue of $65 million.

For the third quarter, Wind expects to earn 6 cents or 7 cents a share on a pro forma basis on sales ranging from $66 million to $67 million. Analysts were projecting a profit of 9-cents per share on sales of $69 million.

For the full fiscal year, the company expects revenue to range from $267 million to $270 million with non-GAAP earnings of 28 cents to 30 cents a share. Analysts expected a 29-cent-a-share profit on revenue of $270 million.

Wind River produces software that is embedded in the operation of electronics used in the aerospace/defense, automotive, communications, consumer and industrial sectors.