Tut Systems Hammered After Fourth-Quarter Revenue Warning

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Shares of

Tut Systems

(TUTS)

have been hit hard after the company said fourth-quarter results will be lower than expected, as tighter capital markets have affected some of its service provider customers.

Shares of Tut Systems were recently down $3.50, or 32.9%, to $7.19 in

Nasdaq

trading.

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The broadband systems provider, which is based in Pleasanton, Calif., expects fourth-quarter revenue of $15 million to $18 million, compared with $10.6 million a year ago. According to

First Call/Thomson Financial

, three analysts expect revenue of $35.7 million for the period.

Analysts expect the company to earn 17 cents a share for the fourth quarter and 10 cents a share for 2000, compared with losses of 13 cents a share and 80 cents a share in the respective periods a year ago.

Yesterday a

Dain Rauscher Wessels

analyst lowered the rating on Tut to buy aggressive from strong buy aggressive and slashed the 12-month price target to $35 from $150.