3Com shares rise after hours; Harmonic falls
Shares of the telecom equipment maker rise in after-hours activity after it beats revised earnings expectations, while an earnings warning sends shares of Harmonic lower.
Excluding one-time costs, 3Com announced a fiscal second-quarter loss of 52.4 million, or 15 cents a share, on revenue of $789.5 million. The revenue includes $22.8 million the company earned from businesses they recently exited.
Wall Street expected the company to lose 20 cents a share, the consensus estimate of seven analysts surveyed by First Call. The network equipment maker had been expected to lose 8 cents a share before a profit warning on Dec. 4.
In after-market trading, the Santa Clara, Calif.-based company's shares rose 84 cents, or almost 12 percent, to $8.03. During regular trading hours, 3Com fell 59 cents to $7.19.
The news was not so good for Harmonic. The broadband equipment maker said it expects to report a pro forma net loss of 20 cents to 30 cents a share in the fourth quarter. Six analysts surveyed by First Call expected the company to lose 10 cents a share for the quarter.
The company also said that it expects to generate revenue of $50 million to $55 million, but some segments will lag. The company's Broadband Access Networks division, which makes equipment for optical networks, will post $25 million to $27 million in revenue for the quarter, compared with revenue of $40.4 million in the previous quarter.
Harmonic blamed the shortfall on decreased equipment purchases by customers, a trend that has recently hit network equipment maker Foundry Networks.
"We currently face challenging market conditions and recognize that many of our customers' spending plans are under review," Anthony Ley, CEO of Harmonic, said in a statement released after the markets closed.
In after-hours trading, the Sunnyvale, Calif.-based company's shares fell $2.25, or 33 percent, to $4.56. In regular trading, Harmonic fell 53 cents to $6.81.