After networking equipment maker

Radcom

(Nasdaq:RDCM) released its results for the fourth quarter of 2000, the executive expressed its faith in the company's ability to grow despite the industry's weakness and slowdown.

Wishful thinking, it would seem. Yesterday Radcom released a profit warning for the first quarter of 2001, its third warning in four quarters.

The

RAD

group company expects revenues in the first quarter to fall to $5 million, compared with $6.9 million sales in the parallel quarter in 2000.

Loss per share may increase to 25 cents, compared with a loss of 4 cents per share in first quarter of 2000.

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In the fourth quarter of 2000, Radcom reported sales olf $7.9 million and a loss per share of 6 cents.

Market cap slides to $18 million

Radcom attributed the warning to elongation of the sales cycle. Demand for its products is waning in North America.

Radcom makes quality control tools that locate defects in voice and data networks.

The diminishing aning demand, the company has made a one-time write-off of $2 million in respect of sales. "The company's write-off is a direct result of a decrease in expenses due to the economic slowdown," said Radcom President and Chief Executive Arnon Toussia-Cohen. "We plan to adjust our expenses to reflect the current market situation through strategic cost-cutting efforts in the short-term."

This all sounds very familiar. Cost-cutting usually means dismissals.

Maybe to soften the blow, Radcom also said on Tuesday that it intends to pursue its plan to repurchase up to a million shares.

Radcom shares leaped by 70% during the month following the company's announcement, against the trend then prevailing on the Nasdaq. Since then the shares have fallen to a record low of $1.8. Radcom's market cap is down to $18 million and it has $15 million cash and equivalents.