Calix (NYSE: CALX) may have ridden a strong wave of broadband stimulus project wins in recent quarters, but that party might end when they report their Q3 2011 earnings later in October.
The Petaluma, Calif.-based vendor decided to lower its third quarter outlook because of fiber shortages and an overall economic slowdown.
Another reason Calix has given a lower outlook is the that a number of service providers that have signed contracts to deploy their last mile access equipment in their broadband stimulus projects have yet to become shippable orders.
When it conducts its earnings conference call on Oct. 20, Calix expects to report earnings of 7-9 cents a share on revenue of $83-$85 million. Previously, Calix projected 20 cents a share adjusted profit on revenue of $104 million.
As expected, Wall Street did not like the news. In midday trading on Monday, Calix's shares were down $1.05, or 10 percent, at $9.21 each.
For more:
- Reuters has this article
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