SUNNYVALE, Calif.-Wi-Fi and broadband wireless equipment provider Proxim Corp. lowered its first-quarter financial expectations, saying it now expects to report lower revenues and greater losses than those predicted in January.
The company now predicts revenue for the quarter will be between $25 million and $27 million compared with the previous forecast of $37 million. Losses per share will range from 4 cents to 6 cents, compared with previous guidance of 1 cent to 3 cents.
The company also expects its first-quarter order backlog to be approximately $12 million compared with a backlog of $6.3 million at the end of the fourth quarter last year. Proxim said the strong order backlog reflects an increase in orders late in the quarter.
Proxim said lower-than-expected carrier revenue, due to carrier consolidation and delayed deployments, contributed to the revenue shortfall. In addition, the company pointed to challenges associated with the transition from the Orinoco AP-2000 wireless local area network access points to the next-generation Orinoco AP-4000 platform during the quarter.
“Although we are disappointed with this revenue performance, we believe that the seasonal and product transition issues are addressable,” said Frank Plastina, chairman and chief executive officer of Proxim. “We are encouraged by our strong end-of-quarter-order backlog and effective cash management.”
Following the news, Proxim’s stock plummeted more than 15.5 percent to trade at $1.47 per share.
