Visual Networks, Inc. (Nasdaq: VNWK) was down 37 percent before Wednesday's opening bell, following Tuesday night's news the company said it won't meet its already lowered estimates for the year.
Shares in the network management software maker slid 37 percent to 6 13/16 over the Island ECN from a Tuesday close of 10 13/16. The stock already tankedin July after the company warned it wouldn't meet estimates for 2001.
Third quarter revenue is now expected to be about half the $30 million forecast by the company in July. The company also said loss will be substantially greater than the loss of 3 cents a share previously forcasted.
Things get even worse: Visual Networks said fourth quarter revenue will be about the same as the third quarter's, and its revenue expectation of $165 million for 2001 is no longer achievable.
The company said that as it has gotten further into its plan to regain focus, it has realized the challenges it faces are of greater magnitude than it had thought in July. Visual Networks said it will continue the review and present an updated outlook to stockholders in mid-September.
The company added that is has a strong cash position and balance sheet, and plans to renew growth.
Kam Saifi, former chief executive officer of Avesta Technologies, has resigned as an employee and director of Visual Networks.