Updated from 9:34 a.m. EDT
lowered its revenue forecast for the second quarter because of a deferral of $13 million in contracted shipments to a major customer.
The data networking company, which is based in Sunnyvale, Calif., also said it would re-evaluate its merger agreement with broadband company
( WMUX) and discuss "any ramifications" from its announcement today.
Adaptive now expects about $8 million in second-quarter revenue, compared with $2 million in the same period last year. In its first-quarter financial results announcement, Adaptive Broadband said it had a revenue-growth goal of more than 30% for each quarter, which would have translated to a top line of more than $31 million for the second quarter.
The company said it recently made a $15 million strategic equity investment in
, but that financing issues between the two companies have caused a delay in the $13 million shipment and a $12 million payment for an overdue receivable from a Fuzion unit. In addition, $4 million in international orders were delayed, Adaptive said.
Adaptive Broadband cited the continuing decline in the state of the domestic competitive local exchange carrier market, which the company said led to significant delays in both existing and new-customer deployments in the U.S.
Western Multiplex, also of Sunnyvale, Calif., said it was "obviously disappointed to hear Adaptive's latest news." Western plans "to evaluate all of our alternatives with respect to the proposed transaction in light of this new information."
Shares of Adaptive recently lost $3.13, or 51%, to $3, while Western Multiplex lately surged $1.66, or 24.1%, to $8.53 in trading on the