FRAMINGHAM, Mass.—NMS Communications said it expects to report disappointing second-quarter revenues and earnings results when it releases its full financial report later this month.
Revenues are expected to be between $25 million and $26 million, which falls below the average analyst expectation of $29.5 million. The company had guided for revenues of between $29 million and $31 million.
The company’s generally accepted accounting practice net loss per share is expected to be between 6 cents and 7 cents per share. Analysts were expecting earnings per share of 3 cents. The company had guided for a loss per share of 2 cents to breakeven.
“We are clearly disappointed with the financial results we expect to deliver for the second quarter,” said Bob Schechter, chairman and chief executive officer of the company. “Revenues from our platform solutions business are expected to be well below Q1 levels.
“While some sequential decline in this part of our business was anticipated and reflected in our guidance, due to an end-of-life order previously disclosed, our platform solutions business was also impacted by several of our customers experiencing delays or difficulties in closing business with their respective customers and/or prospects.”
Schechter added that the company is optimistic that the platform solutions business will return to moderate growth, particularly with positive momentum it is seeing in its mobile applications and network infrastructure products segments.
“We expect to report significant sequential growth in these areas for the second quarter and we continue to make progress toward achieving our strategic objectives in these new product areas,” said Schechter.
The company plans to report full details of its second quarter results on July 27.
