Bezos' space plans sparked laughs in 2000 Suicide Squad review Doctor Who star Jodie Whittaker leaving in 2022 Disney sued by Scarlett Johansson Nikola founder Trevor Milton indicted Another 1.5 million unemployment refunds

Copper Mountain warns of lower 4Q revenue

Copper Mountain Networks Inc. (Nasdaq: CMTN) joined the club of downtrodden DSL stocks Friday, and announced fourth-quarter revenue will miss expectations.

Shares in the Digital Subscriber Line (DSL) provider closed down 0.41 to 4.76. The stock was already battered down Wednesday when all DSL stocks were hammered after equipment vendors Efficient Networks (Nasdaq: EFNT) and Turnstone Systems (Nasdaq: TSTN) issued profit warnings.

Revenue for Copper Mountain's fourth quarter ended Dec. 31 is now expected to be in the range of $46 million to $49 million. The company said net revenue was dented by weakness in the competitive local exchange carrier (CLEC) customer base.

It also said results were lower due to a decision not to recognize about $8.0 million of shipped equipment as part of its revenue, because its not sure the customer who ordered it will be able to pay up. The maximum balance sheet exposure associated with this customer, including the fourth quarter shipments, is about $6.0 million.

The company added that in spite of the current market conditions, it will continue to expand its international businesses and target the incumbent telecommunications service provider (ILEC/IXC) DSL markets.

After Wednesday's warnings, Robertson Stephens analyst Paul Johnson overhauled his ratings on all companies his firm follows in the DSL space, including Copper Mountain. He said the main problem this year was the difficulty that independent carriers had in gaining market share from the ILECs (incumbent local exchange carriers) and traditional carriers.

Copper Mountain will release actual results for the fourth quarter on Feb. 1.