Earnings sink Netopia in after-hours trading
The company's shares fall about 39 percent in after-hours trading after the company releases fiscal fourth-quarter earnings that miss Wall Street expectations.
Excluding certain charges, Netopia said it earned a pro forma income of $801,000, or 4 cents per share, on revenue of $23.6 million. In the same quarter a year ago, the maker of Internet access equipment lost $174,000, or 1 cent a share, on sales of $13.5 million.
Wall Street expected the company to make a profit of 17 cents a share for the quarter, the consensus estimate of eight analysts surveyed by First Call/Thomson Financial.
Netopia also missed some Wall Street revenue estimates. Analysts from Pacific Crest Securities, Robertson Stephens and Jeffries & Co. all predicted the company would collect more than $31 million.
The Alameda, Calif.-based company said in a statement released after the markets closed that it expects revenue for fiscal 2001 to grow 50 percent from the previous year as digital subscriber line (DSL) service providers buy more equipment. Yet for the first quarter ending Dec. 31, Netopia expects revenue and pro forma earnings to be flat from the previous quarter.
In after-hours trading, the company's shares fell $4.44 to $7, making it the second-largest percentage loser after the markets closed. In regular trading hours, Netopia rose 56 cents to $11.44.
The top five most active stocks in Nasdaq after-hours trading today:
• Cisco Systems: 3.3 million shares, up 62 cents
• WorldCom: 2.5 million shares, up 12 cents
• Harmonic: 2.35 million shares, down 13 cents
• Intel: 2.21 million shares, up $1.75
• Microsoft: 1.46 million shares, up 31 cents