Sycamore Drops on Warning, Layoffs

Author:
Publish date:

Sycamore Networks (SCMR) was down 12.2% in preopen Island trading. After the close Thursday it warned that its fiscal first-quarter loss would be 16 to 18 cents per share. Analysts were expecting a loss of 16 cents, according to Thomson Financial/First Call.

Sycamore said it now expects revenue of $20 million to $25 million for the quarter, which ends Oct. 27. The range is below the current consensus of $32.6 million, as compiled by First Call.

In addition, Sycamore set 240 layoffs, disclosed a $200 million charge and said it sees no evidence of a turnaround in capital spending.

Telecommunications equipment stocks were broadly lower preopen. Networking giant

Cisco

(CSCO) - Get Report

was down 1.9%.

Juniper

(JNPR) - Get Report

was down 2%.

JDS Uniphase

(JDSU)

was off 1.7%.