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Harmonic drops on 4Q warning

Harmonic Inc.'s (Nasdaq: HLIT) shares fell more than 17 percent Friday after the company said its fourth-quarter loss may be three times as large as analysts' estimates due to slumping market conditions.

Shares of the communications equipment maker, which restated its third quarter results last month, shed 1.19 to 5.625 at the bell.

After market close Thursday, Harmonic officials said that they now expect revenues to fall in the $50 million to $55 million range, with pro forma net loss coming in between 20 cents and 30 cents a share. The miss is well above First Call estimates, which had predicted loss for the quarter of 10 cents a share.

The company said the miss was due to the spending slowdown that is affecting the entire communications sector. In addition to the previously announced halt on AT&T Broadband shipments, Harmonic said that other customers have delayed or cancelled orders for the remainder of the year.

"Many of our customers are reviewing their upgrade and build plans in light of more difficult conditions in the capital markets," said Harmonic CEO Anthony Ley, in a release. He added that the company is currently re-evaluating its plans for 2001 will provide more detailed guidance in January.