Terayon Communication Systems Inc. (Nasdaq: TERN) shares dropped over 50 percent Monday after the company said its fourth quarter results would be "significantly less" than anticipated.
Instead of a profit, the broadband networking supplier now sees a hefty loss for its fourth quarter, due to the cancellation of orders late in the quarter and a slowdown in the growth of product orders. Terayon's stock fell 7.16 to 6.40 at the opening bell.
Terayon said it now expects a a loss of $34 million to $36 million, or 46 cents to 49 cents per share, excluding charges. Revenue will come in between $60 million and $63 million. The new numbers are a substantial departure from previous expectations. First Call analysts had been expecting a profit of 6 cents a share on revenue of $130.3 million.
The reduced numbers are a steep drop year over year, down from the 2 cents per share earned on revenue of $38.7 million a year ago. Terayon had performed well in the previous quarter, as well, topping estimates for its third quarter.
The company indicated it would reorganize its core business segments and reduce operating costs in the new year to try to turn around its sagging performance.