Concurrent Computer shares were halved Wednesday, falling $3.88, or 49 percent, to a 52-week low of $4.06 after warning that it will post a wider-than-expected loss in its second quarter.
Company officials said a delay in orders from a major domestic cable operator will result in loss of 7 cents to 8 cents a share in the quarter.
First Call Corp. consensus expected Concurrent Computer (Nasdaq: CCUR) to post a loss of 3 cents a share in the quarter.
Officials said the cable operator delayed large orders for three new video-on-demand system deployments. The shipments had been expected before the end of December but will now move next quarter.
The company now expects video-on-demand second-quarter sales to be between $1.7 million and $1.9 million, down from its previous estimate of between $7 million to $7.5 million.
Concurrent also said it expects to post 2001 revenues of $73 million to $85 million.
“We remain excited about the VOD commercial launches being planned for 2001 by the major cable operators,” said CEO Jack Bryant in a prepared release. “The timing of these new system deployments slipping in to next quarter is unfortunate, but in no way dampens Concurrent's enthusiasm for the VOD market opportunity…”
On Wednesday, Jefferies & Co. downgraded the stock to an “accumulate” rating from a “buy.”
The stock peaked at $24.75 in January before falling to Wednesday’s low.
Seven of the eight analysts tracking the stock maintain either a “buy” or “strong buy” recommendation.