UPDATE 1-Acme Packet gives weak Q2 profit view; shares sink
July 3rd, 2008 | by admin |(Recasts; adds details, share movement)
July 3 (Reuters) - Acme Packet Inc (APKT.O: Quote, Profile, Research, Stock Buzz), a provider ofcommunications and data services, forecast second-quarterearnings below market expectations due to a delay in closing ofsome transactions, sending its shares down more than 34 percentto their lowest since October 2006.
The company also said it was unable to recognize, in thesecond quarter, revenue for a high volume of products that itshipped in the last several days of the quarter.
Acme said it expects to earn $0.2 million to $1.2 million,or breakeven to 2 cents a share, on revenue of $24.5 million to$25.5 million.
Excluding certain items, the company expects to earn 2cents to 4 cents a share.
Analysts on average were expecting the company to earn 9cents a share, excluding special items, on revenue of $33.57million, according to Reuters Estimates.
Gross margins are projected to be between 77 percent and 79percent.
For the third quarter, the company expects to return tosequential revenue growth.
Acme Packet shares were down $2.49 at $5.29 in late morningtrade on Nasdaq, after touching a low of $5.11 earlier in thesession. (Reporting by Deepti Govind in Bangalore; Editing by GopakumarWarrier)
