Aware executives said preliminary financial data for the quarter ended June 30 shows the company broke even on a per-share basis on sales of between $3.8 million and $4 million, down from its previous estimate calling for sales between $5.2 million and $5.4 million. Aware will officially report its second-quarter results July 31.
First Call pegged the Bedford, Mass.-based company for a profit of 1 cent per share in the quarter.
Aware said that it expects to record an income tax benefit of about $900,000 to $1.1 million in the second quarter because of a year-to-date tax adjustment.
"While worldwide demand for DSL service remains strong, the global telecommunications industry has undergone a significant slowdown, which has affected the DSL supply chain as well," Chief Executive Michael Tzannes said in a statement. "The timing of certain transactions with existing and new customers did not occur as we had expected."
Many equipment providers serving the telecommunications market, particularly those suppliers to the hard-hit DSL (digital subscriber line) sector, have seen poor sales this year. Carrier customers have cut their spending as profits slide amid a slowing U.S. economy.
Analog Devices, Intel, Agere and Infineon are among Aware's largest customers.
Last quarter, Aware posted a profit of $2.1 million, or 9 cents a share, on sales of $8.2 million.
The company's shares fell 77 cents, or more than 8 percent, to close at $8.23 Monday, down from a 52-week high of $61.44 set last July.