Waits until the last moment before the July 4 holiday to announce a big reduction in projected Q2 revenues
July 4, 2003
Firms that put out a press release about financial or legal affairs at the last minute before a public holiday might just as well broadcast an email to the world saying: "Here's some news we hope you don't see."
So it was that Redback Networks Inc. (Nasdaq: RBAK) issued a press release about its projected second-quarter revenues at 18:40 Eastern time (15:40 Pacific) on Thursday, (see Redback Sees Q2 Slide).
The vendor is projecting revenues of just $22 million for its latest three-month period (ended June 30), down from $29.5 million in the first quarter (see Redback Reports $24.9M Loss). According to figures from Thomson First Call, analysts had, on average, been expecting second-quarter revenues of $30.7 million.
Redback, of course, was not available for comment today.
Redback's share price fell by 3 cents on Thursday, to close at 91 cents. Of course, the market had closed before the press release hit the wires, so it could be a stock to watch when the market opens again Monday.
Redback's is capitalized at $166.4 million and has a 52-week high of $2.00, with a low of 24 cents. Its revenues for the whole of 2002 were $125.6 million (see Redback Trims Losses, CFO).
— Ray Le Maistre, International Editor, Boardwatch
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