Wind River Systems
was plunging a day after the company warned that its results for the first quarter would fall short of previous expectations.
The network infrastructure software company said it now expects to report a loss of 12 cents to 14 cents a share on revenue of $64 million to $66 million for the quarter as customer orders dried up in a weakening communications infrastructure market. Previously, Wind River forecast a loss of 2 cents to 4 cents on revenue of $76 million to $80 million.
The new outlook also falls short of analysts' consensus estimate of a loss of 3 cents a share on revenue of $78.4 million, according to Thomson Financial/First Call.
Wind River said in a press release that the previous guidance assumed "end markets would remain relatively flat," but it now sees a continued drop in demand. The company also said it plans to cut operating expenses by $4 million to $6 million a quarter on a combination of job cuts and cost-saving initiatives.
Shares of Wind River were down 18% to $8.24 after closing at $10 Wednesday.