Secure Computing takes a pounding

It comes as no surprise that Secure Computing Corp. (Nasdaq: SCUR) shares plummeted 9/16, or 19 percent, to 2 7/16 Wednesday after warning it would report a staggering loss of between 42 cents to 49 cents a share in its second quarter.

The pathetic performance forced CEO Jeff Waxman to resign effective immediately.

First Call consensus expected the software developer to earn 5 cents a share in the quarter.

In a company release, Secure Computing said Waxman had resigned to pursue personal interests and that COO John McNulty will take the helm.

Company officials said it now expects sales of between $5.7 million to $6.2 million in the quarter, a decline of between 57 percent to 61 percent from the year-ago quarter.

Secure Computing will also absorb charges of approximately $12 million in the quarter after slashing major parts of its product mix and restructuring.

Last quarter, Secure Computing lost $9.7 million, or 58 cents a share, on sales of $8.2 million.

After soaring to a high of 29 in January, the stock fell to a 52-week low of 2 7/8 last week.

Seven of the eight analysts following the stock rate it a "hold.">