ATLANTA-Glenayre Technologies Inc. lowered its revenue expectations for the third quarter from $17 million to $19 million to between $13 million and $14 million. The company also cut its work force by 5 percent, mainly in its manufacturing division.
Investors sent the company’s stock down almost 20 percent after the news to about 83 cents per share.
However, the company also said it expects its cash and short-term investment position to increase to about $105 million by the end of the month, as a result of favorable cash flows from working capital.
“Market softness in the telecommunications sector has caused carriers to continue deferring their capital spending. This ongoing uncertainty, combined with competitive pricing pressure and our conservative approach regarding customer financing in this tough economy, has caused us to lower the third-quarter revenue forecast,” said Eric Doggett, Glenayre’s president and chief executive officer. “Our ability to provide estimates for Glenayre’s future financial performance is also hindered.”
Separately, the company announced it sold its 1500th Modular Voice Processor messaging platform to U.S. Cellular.
