, a hardware and software provider, said after the bell it will record a fourth-quarter charge and indicated that revenue for the period will be lower than expected because of customer cancellations and reduced orders.
The Santa Clara, Calif., company expects revenue of $26 million to $28 million for the quarter. Five analysts polled by
First Call/Thomson Financial
produced a consensus estimate of $41.7 million in revenue. Turnstone also said it expects a $13 million to $15 million charge to increase inventory and bad debt reserves.
As a result of the charge, Turnstone forecast an operating loss of $12 million to $14 million for the quarter. Excluding charges, Turnstone expects an operating profit of $2 million to $3 million. The company didn't provide any EPS figures, but analysts on average are calling for fourth-quarter earnings of 8 cents, down from 11 cents a share in the third quarter.
The company also said it currently expects "continued weakness" among its competitive local exchange carrier customer base, and as a result remains "cautious" for the "next several quarters."
Turnstone shares lately fell to $6.31 in after-hours
trading, down from its closing price of $6.56 on the