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Turnstone Systems Punished After Cutting Revenue Estimate

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Shares of

Turnstone Systems


plummeted after the company lowered its revenue guidance for the fourth quarter, citing sector-wide weakness among its competitive local exchange carrier customers.

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Shares of Turnstone recently tumbled 59.5%, or $17.56, to $12.

The Santa Clara, Calif., company, which makes hardware and software used by local exchange carriers, lowered its revenue estimate for the quarter ending Dec. 31 to $38 million revenue. Three analysts polled by

First Call/Thomson Financial

expect the company to report revenue of $56.3 million for the quarter, while six analysts expect earnings of 16 cents a share.

Turnstone Systems also said it lowered its estimate because of reduced capital spending.