Harmonic (Nasdaq: HLIT) crashed 40 percent Tuesday after the communications equipment provider said it would fall short of analysts' estimates this quarter.
Shares were down 16 1/2 to 24 5/16. C-Cube Microsystems (Nasdaq: CUBE), which owns nearly 45 percent of Harmonic, was down 1 7/8 to 19 3/8.
Donaldson, Lufkin & Jenrette lowered earnings estimates for 2000 from $1.19 to 95 cents a share, and from $1.57 to $1.30 for 2001.
It's now expecting a profit of between 12 cents to 16 cents a share, far short of the consensus estimate of 29 cents a share.
Including purchase accounting adjustments, the company expects to report a net loss for the quarter of $87 million to $90 million or $1.83 to $1.87 per share. These estimates include 2months of results of operations for the DiviCom business, which it bought from C-Cube Microsystems Inc.
The company said sales will lumber in at $74 million to $82 million mainly because sales to AT&T (NYSE: T) have dried up.
AT&T Broadband accounted for about 40 percent of the company's sales in 1999.
Harmonic's competitors include ADC Telecommunications (Nasdaq: ADCT) and Motorola (NYSE: MOT) according to Hoover's Online.
The company will announce actual results on or about July 19.
Discuss: Harmonic crashes on warning
Be respectful, keep it clean and stay on topic. We delete comments that violate our policy, which we encourage you to read. Discussion threads can be closed at any time at our discretion.