December 6, 2011 / 3:34 PM / 7 years ago

UPDATE 2-Sandvine shares plunge on weak outlook

* Sees Q4 rev down 20-22 pct at C$19.5-C$20 mln

* Wins $4.5 mln order

* Shares down 29 pct (Adds details on new contract, updates share movement)

Dec 6 (Reuters) - Sandvine Corp said it expects fourth-quarter revenue to fall 20-22 percent from last year, hurt by budget reductions and poor performance among some of its largest customers, sending its shares down 29 percent to their lowest in the year.

The Waterloo, Ontario-based broadband equipment maker sees fourth-quarter revenue in the range of C$19.5-C$20 million, compared with C$25 million a year ago.

The company added seven new customers in the fourth quarter and won an expansion order of $4.5 million, it said in a separate statement.

“Several of our largest customers did not generate the level of business we had anticipated for a variety of reasons, including budget reductions... shifting capital priorities and slower roll-outs,” Chief Executive Dave Caputo said in a statement.

Sandvine shares fell 29 percent to touch a year-low of C$1.31 in morning trade on Tuesday on the Toronto Stock Exchange, before recovering to C$1.40. (Reporting by Gowri Jayakumar in Bangalore; Editing by Sreejiraj Eluvangal)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below