Network equipment maker Sycamore Networks said Tuesday that it expects third-quarter revenue to fall short of expectations as customers continue to spend cautiously amid the downturn in the telecommunications sector. The Chelmsford, Mass.-based company said it expects a third-quarter pro forma loss--before amortization of stock compensation and payroll tax on stock-option exercises--of 10 cents to 12 cents a share and revenue of $13 million to $14 million. Wall Street analysts, on average, had expected a loss of 11 cents a share and revenue of $17.11 million, according to First Call.
Sycamore Networks said it anticipates its cash burn to total about $23.5 million, which includes $18 million in restructuring liability payments. The company plans to report third-quarter results on May 21. In February, the company said it expected revenue in the third quarter would be roughly unchanged to down from the second quarter's $21.8 million. Before the announcement, shares of Sycamore closed up 4 cents at $3.38.
Story Copyright © 2002 Reuters Limited. All rights reserved.