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Computer Network Technology to miss 2Q estimates

Computer Network Technology Corp. (Nasdaq: CMNT) said Wednesday it would report a smaller-than-expected profit in its second quarter. Its shares closed off 5 1/8, or 23 percent, to 17 1/2 ahead of the warning.

Company officials said the customer order delays were responsible for the sales and earnings shortfall.

Computer Network Technology now expects a profit of 7 cents a share on sales of $38 million.

First Call consensus pegged the Minneapolis-based developer of enterprise hardware and software to earn 11 cents a share in the quarter.

Last quarter, it topped analysts' estimates by 2 cents a share, earning $2.7 million, or 11 cents a share, on sales of $36.9 million.

"Revenues from our EAI products increased approximately 112 percent from the second quarter of 1998 and approximately 38 percent from the first quarter of 1999," said CEO Thomas Hudson in a prepared release. "Our revenues and earnings for the quarter fell short of our goals primarily because of the delay in the receipt of several forecasted orders, particularly in our EAI market segment."

Its shares hit a 52-week high of 30 5/8 in May after falling to a low of 3 1/2 in October.

All five analysts following the stock rate it either a "buy" or "strong buy."

In the year-ago quarter, it posted a profit of 4 cents a share on sales of $33.5 million.