Copper Mountain shares slide
Shares of the company, which makes broadband network equipment, slide more than 24 percent despite second-quarter earnings that exceeded predictions.
Shares in the high-speed network equipment firm were down as much as 24 percent today, due in part to a press release sent out yesterday that contained inaccurate financial figures. Shares closed at $93.25, down $30.44 or more than 24 percent.
Three analyst firms reiterated a "buy" or "strong buy" on the stock this morning.
Copper Mountain Networks reported better-than-expected quarterly earnings at the close of the market yesterday, bolstered by increased interest in high-speed Internet access technology.
Net income, excluding stock-based compensation charges and the amortization of goodwill, was $14.2 million, or 24 cents per pro forma diluted share, in the second quarter. That compares with pro forma net income of $2.8 million, or 5 cents per pro forma diluted share, for the same quarter of last year.
Analysts expected the Palo Alto, Calif.-based company to earn 22 cents per share, according to a survey by First Call/Thomson Financial.
Copper Mountain makes high-speed, or broadband, network equipment that telephone companies can use to turbocharge their sprawling copper phone lines. Dubbed digital subscriber lines (DSL), the technology has become increasingly popular as a means to surf the Net.
Including charges, net earnings for the quarter were $10.3 million, or 18 cents per diluted share, on revenues of $80.2 million. That compares with earnings of $2.3 million, or 5 cents per diluted share, on revenues of $22.9 million in the same period in 1999.
At the close of regular market trading yesterday, Copper Mountain Networks shares were up $8.44 to $123.69.
The company released the earnings report after the close of regular trading. In after-hours trading, Copper Mountain Networks shares were down at about $108.
Copper Mountain Networks chief executive Rick Gilbert attributed the company's results to its progress in product development as the company released new technologies.
"We expect that these products will continue to position Copper Mountain solutions as best-of-breed for the evolving business, MTU (multi-tenant units), and residential DSL markets," Gilbert said in a statement.
News.com's Ben Heskett contributed to this report.