Acme Packet Points to Capex Weakness
The company is predicting second-quarter revenues of $66 million to $68 million. Analysts polled by Thomson Reuters were expecting $73 million.
Non-GAAP earnings are likewise going to disappoint: Acme Packet is expecting 12 to 13 cents per share, whereas analysts were expecting 17 cents.
The company's stock was down $2.77 (15%) at $15.63 by midday Friday. Acme Packet's earnings will come out on July 26.
Why this matters
Earnings season starts next week, and this is a bad sign for any vendors with a heavy wireline dependency.
Jefferies & Company Inc. analysts already noted, a couple of weeks ago, that wireless is the healthier half of telecom spending at the moment. But the attention on 4G is coming at the expense of wireline spending; analysts James Kisner and George Notter pointed to Acme Packet and Adtran Inc. (Nasdaq: ADTN), respectively, as being in particularly vulnerable spots.
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