Redback (RBAK) was up 12.7% in preopen Island trading after the company said Wednesday its loss for the third quarter would be the same as or slightly higher than the second quarter's loss of 26 cents a share.

The broadband networking systems provider said revenue would be in line with the consensus estimate of about $56 million, compared to $59.4 million in the second quarter.

CFO Dennis Wolf added, "Of course, this is dependent on an industry environment that doesn't erode any more than it already has."

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