BOULDER, Colo.-Shares of SpectraLink Corp., which manufactures and provides wireless phone systems for the enterprise, plummeted more than 20 percent this morning following warnings that its second-quarter financial results, to be officially released Thursday, will fall short of market expectations.
SpectraLink said its total revenue for the second quarter will be $20 million and earnings per share will be 10 cents. It blamed the lower-than-expected numbers on low gross margins, higher general and administrative costs and slower-than-anticipated order flow in the final week of the quarter. However, SpectraLink said its sales of its NetLink product were up for the quarter, representing 45 percent of total product sales.
The company is not changing its previous guidance for the full year 2004, which calls for total revenue to fall around $80 million. It does expect operating margins to be lower than earlier estimates of 20 percent for the full year.
“While the quarterly financial results did not reach expected levels, the business and financials remain sound as we begin to transition the company from a niche market provider to a mainstream player in partnership with the largest telecommunications manufacturers worldwide,” said John Elms, president and chief executive officer of SpectraLink.
SpectraLink was trading at $9.78 per share at press time, almost $1 below its previous 52-week low.
