The vast influence of Lucent Technologies Inc. and its problems materialized in wireless broadband equipment provider Netro Corp.’s financial outlook for the fourth quarter and 2001.
A change in anticipated base-station orders from the second half of December to the first quarter of next year by Lucent-Netro’s largest original equipment manufacturer customer-forced Netro to adjust its revenue estimates. Netro said it will realize between $21 million and $22 million in revenues for the fourth quarter, compared with $7.7 million for the same period last year.
“While we were disappointed by the shift in orders by Lucent, we estimate that they will still constitute 85 percent of our revenues this quarter, and will continue to be a substantial fraction of revenue in coming quarters,” said Sanjay Khare, vice president and chief financial officer for Netro.
Lucent’s troubles sparked concerns about overall slowing in telecommunications buildout and the availability of vendor financing. Consequently, Khare said Netro also lowered its 2001 revenue estimates, which the company plans to detail during its January quarterly conference call.
Upon news of the modified estimates, shares of Netro plummeted 19.9 percent to $6.81. At one point earlier in the year Netro shares hit their 52-week high of $119.63. The stock was trading at $7 at RCR Wireless News press time.
