SonicWall Sees Earnings Shortfall

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SonicWall

(SNWL)

expects its first-quarter results to fall short of analyst estimates, due primarily to the "challenging economic environment and its impact on buying patterns."

The Internet security company said it expects to post first-quarter pro forma net income of $1.5 million to $2.5 million, or 2 cents to 3 cents a share, compared with pro forma net income of 8 cents a share in the year-ago quarter. Analysts polled by Thomson Financial/First Call were expecting 9 cents a share.

Revenue for the quarter is expected to be in the range of $28 million to $29 million, up from $24.57 million in the year-ago quarter, but falling short of the consensus First Call analyst estimate of $34.73 million.

In a press release, the company said it is disappointed in its operating results this quarter, and it plans to offer guidance for the remainder of 2002 on April 18.

Shares of SonicWall were reacting negatively to the news, falling 15.7% to $8.50 in Instinet premarket trading after closing at $10.08 Wednesday.