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VoIP Systems

Acme Packet Points to Capex Weakness

Acme Packet Inc. (Nasdaq: APKT) trimmed its predictions for the second quarter, saying Friday that North American service-provider spending has been weak.

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.

For more — Craig Matsumoto, Managing Editor, Light Reading

Blackdog_n3 12/5/2012 | 5:28:11 PM
re: Acme Packet Points to Capex Weakness

So where has the projected Session Control market growth all gone? This was supposed to be a growth market with the advent of 4G/LTE/VoLTE; doesn't seem to be coming true for ACME and they have the largest footprint - Where are GBND, SONS, etc. tracking..?

gtchavan 12/5/2012 | 5:28:21 PM
re: Acme Packet Points to Capex Weakness Spending weakness or price weakness, that is the question for acme and that is too hard to tell from the release, after all SIP is nothing new.
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