Broadband wireless access system supplier
(Nasdaq:VYYO) saw its shares plummet after issuing a severe profit warning on Monday for the first quarter of 2001.
Vyyo cited a fall-off in orders from systems integrators, and the weak global markets as the reasons for its deteriorating financial figures.
The company projects that its first quarter revenues for this year will be less than $1 million compared with analysts projections of $7.9 million, and to the firm's first quarter revenues in 2000, which came to $6.1 million.
Vyyo now expects its revenues for the year 2001 to reach only $20 million, compared with earlier estimates of more than $60 million.
The global fall-off in the telecom sector is expected to affect the firm's performance until at least 2002, said a Vyyo press release.
Vyyo is certainly not the only firm in this sector to suffer, Israel's
(Nasdaq:BRZE) has also been smashed by the weakened industry. But Vyyo still believes that demand for broadband access remains strong, and says it loss in revenue is not due to the increased market share of its competitors.
Vyyo is headquartered in Silicon Valley, California, and has offices in Jerusalem, Israel. The company is to publish its Q1 results in April, and is expected to update its annual forecast at that time.