UPDATE 1-Sycamore posts wider-than-expected loss; shares fall
* Q1 adj loss/shr $0.20 vs est loss/shr $0.04
* Q1 rev $11.7 mln vs est $16.95 mln
* Announces cash distribution of $6.50/shr
* Shares down as much as 15 percent
Dec 1 (Reuters) - Communications equipment provider Sycamore Networks SCMR.O posted a wider-than-expected quarterly loss as its slowing legacy bandwidth-management business hurt revenue, sending its stock down to a near three-month low.
For the quarter ended Oct. 30, Chelmsford, Massachusetts-based Sycamore reported a loss of $6.5 million, or 23 cents a share. It had posted its first profit in 11 successive quarters during May-July. [ID:nSGE68119D]
Excluding items, the company lost 20 cents a share, while analysts had anticipated a loss of 4 cents a share, according to Thomson Reuters I/B/E/S.
Revenue fell 25 percent to $11.7 million, well below Wall Street expectations of $16.95 million.
The company had previously indicated that growth from its existing customer base was limited and is vying to get a higher share of the bandwidth management business for 3G networks through its IQstream product.
Shares of Sycamore, which counts Verizon Communications (VZ.N) and Sprint Nextel (S.N) as its customers, gained 35 percent since it reported a fourth-quarter profit.
They were down 15 percent in late-morning trade on Wednesday on Nasdaq. They touched a low of $25.38 earlier in the day. (Reporting by Himank Sharma in Bangalore; Editing by Maju Samuel)
- Police seek motive in fatal Washington state school shooting
- U.S. nurse quarantined over Ebola criticizes her treatment |
- Washington state teen shooter's family living in 'nightmare'
- Two deputies killed, two others hurt in California shooting spree
- Wall St. finally turning on Amazon as Bezos magic fades