FVC.com (Nasdaq: FVCX) crumbled 48 percent Thursday after the maker of software for broadband two-way video networking warned it will lose about 25 cents a share for the first quarter.
The company said losses were due to the majority of orders piling into the late end of the quarter.
Shares were down 6 7/8 to 7 3/8, far below their 52-week high of 27 1/4. This isn't the first time FVC.com has had to warn investors. The company pre-announced wider-than-expected losses in its fourth quarter as well.
Net loss for the quarter is expected to be in the range of 23 to 26 cents a share. First Call's consensus of 6 brokers' estimates had expected the company to break even.
The company said revenue is expected to be about $10.1 million. In the comparable quarter of 1999, the company reported revenue of $8.4 million. Although customer orders in the first quarter were consistent with expectations, many of the orders were received very late in March and were unable to be fulfilled during the quarter.
The company said it has improved its focus on its Click to Meet two-way video service, and has seen a significant success with its relationship with Qwest (NYSE: Q).
President and CEO Richard Beyer said he's confident heavy investment in this market will result in a large number of additional service providers signing up for our offering during the remainder of the year.
FVC.com's competitors include Newbridge Networks (NYSE: NN) and Cisco Systems (Nasdaq: CSCO).
FVC's official first quarter results will be announced on April 25.