UPDATE 1-Interphase sees loss in Q1; shares fall
(Adds estimates, after market stock movement)
April 11 (Reuters) - Interphase Corp. (INPH.O) forecast a net loss and a significant revenue shortfall for the first quarter, citing a slowdown in telecommunications spending associated with the ongoing merger activity in the sector.
Shares of the company fell over 27 percent to $9.86 in late electronic trade, after closing at $13.66 on the Nasdaq.
The Plano, Texas-based company said it expects a net loss of about $1.7 million to $2.2 million, on revenue of about $5.0 million to $5.1 million for the first quarter.
It had posted a net income of $310,000, or 5 cents per share, on revenue of $8.2 million in the year-ago period.
Interphase, whose clients include Alcatel-Lucent ALU.PA, Ericsson (ERICb.ST), Hewlett Packard Co. (HPQ.N) and Motorola Inc. (MOT.N), said it is difficult to determine when it will return to revenue growth and profitability.
Analysts on average expect the company to earn 1 cent a share, excluding items, on revenue of $8.4 million, for the first quarter, according to Reuters Estimates.
The company makes adapters, controllers, and other connectivity devices for the computer and telecommunications server market. (Reporting by Aniruddha Basu, Sweta Singh in Bangalore)
