PETALUMA, Calif. (AP) — Calix Inc.'s shares lost nearly a third of their value Wednesday after the broadband equipment company lowered its second-quarter forecast, saying customers are reining in spending because of the weak economy.
It's the latest technology company to warn of slowing demand from customers. The Petaluma, Calif., company's customers are businesses — phone companies that use its technology to upgrade their lines to provide Internet and video services.
Calix now expects to earn 4 cents per share, excluding one-time charges, and revenue of $79 million for the three months through June. It had predicted earnings of 7 to 11 cents per share on revenue of $93 to $97 million on May 1.
Analysts polled by FactSet expect that Calix will earn 10 cents per share on revenue of $95.1 million.
Service providers are cutting back because of concerns about broader economic conditions and uncertainty over regulatory reforms, Calix said. Its customers are companies such as CenturyLink Inc. and Cox Communications.
Calix said it would further explain problems and discuss their effect on the current quarter when it reports second-quarter results July 31.
Shares fell 73 cents, roughly 10 percent, to close at $6.48 and lost another $2, or 29 percent, to $4.90 in after-hours trading.
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