CNET también está disponible en español.

Ir a español

Don't show this again

Mobile

Telecom gear maker Aware sees sales slump

The company, a provider of hardware and software to the telecommunications industry, falls short of analysts' sales and earnings estimates for its second quarter.

    Aware, a provider of hardware and software to the telecommunications industry, said Monday that it fell short of analysts' sales and earnings estimates for its second quarter.

    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.