“We continue to win in the market and take share as demonstrated by a solid operating performance in the third quarter,” said CEO Gary Smith. “We are experiencing the effects of ongoing macroeconomic challenges and slower than expected roll-outs of new design wins. However, our approach to the market is working, our OPn architecture vision is gaining traction with customers globally, and our view of the long-term opportunity is unchanged.”
For the fiscal fourth quarter, the company is projecting revenue between $455 million and $480 million. That is well below the consensus forecast of $499.5 million. Investors are not happy with that outlook. Shares are down more than 17% in morning trading to $13.85, in a 52-week range of $9.89 to $ 18.39.
Other networking stocks are also in the red. Cisco Systems Inc. (NASDAQ: CSCO) was down nearly 2% and Alcatel-Lucent S.A. (NYSE: ALU) was more than 2% lower. JDS Uniphase Corp. (NASDAQ: JDSU) retreated about 5% and Juniper Networks Inc. (NYSE: JNPR) lost more than 4%.
The Nasdaq is about 1% lower.