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Tech Industry

WJ Communications cuts outlook

    WJ Communications on Tuesday warned that it will miss first-quarter revenue and earnings estimates due to a slowing economy and weakness in demand.

    The company said it now expects to incur a net loss of 5 cents to 7 cents a share for the quarter ending March 30. Revenue is projected to be in the range of $16 million to $19 million. First Call analysts' consensus calls for a loss of a penny in the period.

    Shares fell 19 cents, over 4 percent, to $4.44 at the end of Monday's regular trading session. WJ Communications (Nasdaq: WJCI) manufactures broadband communications products for fiber optic, broadband cable and wireless communications networks.

    According to the San Jose, Calif.-based company, the warning was prompted by the overall slowdown in the economy, along with weakness in demand by most of the company's customers. Many of the company's largest customers, including Cisco (Nasdaq: CSCO) and Nortel Networks, have warned of earnings shortfalls and job cuts in recent weeks.

    "Given our limited visibility, we are concerned that these market conditions may extend into the second half of the year," said CEO Malcolm Caraballo.

    For full-year fiscal 2001, First Call estimates are for a loss of 4 cents a share on revenue of $129.65 million.