tumbled 27% Wednesday after the computer-networking concern warned of a big revenue disappointment for the first quarter.
The company estimated that its revenue for the period totaled $31 million to $33 million, representing a roughly 25% decline from the fourth quarter. Previously, Packeteer projected that revenue would be flat to slightly higher than the $43.2 million it posted for the fourth quarter.
Analysts polled by Thomson Financial had forecast first-quarter revenue of $43 million. Wall Street currently expects earnings of 15 cents a share for the quarter.
"These preliminary revenue results are very disappointing," said Dave Cote, president and CEO of Packeteer, in a statement. "While they will also have a significant impact on our bottom line results for the first quarter, we remain optimistic about our long-term business opportunities."
Packeteer, which didn't give a reason for the sales shortfall, said that its vice president of worldwide sales, Arturo Cazares, has resigned after slightly more than three years with the company. Cote will assume management of the sales organization while the company searches for Cazares' successor.
Shares of Packeteer recently were down $3.40 to $9.17.