Calix says lower Q4 2013 revenue guidance is due to carrier spending declines
Calix (NYSE: CALX) warned that Q4 2013 revenue will be 3.6 percent to 8 percent lower than it initially forecast due to slower than expected sales to service providers.
The Petaluma-based vendor expects to report revenue of $93.5 million to $94.5 million and of non-GAAP earnings per share of 2 cents to 4 cents.
Analysts had forecast the vendor would report $100.5 million in sales and earnings of 7 cents a share for Q4 2013. By comparison, Calix reported $91.4 million in revenue and 6 cents a share in Q4 2012.
"The revised estimates for the fourth quarter reflect a greater than anticipated decline in traditional year-end "budget flush" customer spending patterns than the company historically has experienced," the company said in a statement.
At the end of the third quarter, Calix itself issued a more conservative Q4 2013 outlook of $97 million and $103 million in revenue and a gross margin of 46 percent and 47 percent.
This guidance did not sit well with investors as its stock price declined 8.55 percent, or 79 cents a share, to $8.45 in after-hours trading a half-hour after the closing bell on Wednesday night.
Calix will release its Q4 2013 earnings on Feb. 11.
- see the release
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