Calix shares tumbled Wednesday after the Petaluma telecom equipment provider warned that second-quarter revenues and profits would fall short of expectations.
Telephone companies have slowed purchases of new equipment because of concerns about the economy and uncertainty over regulatory reforms, Calix said.
Calix now expects to earn 4 cents per share, excluding one-time charges, on revenues of $79 million for the three-month period ending June 30. On May 1, it had forecast earnings of 7 to 11 cents per share on revenues of $93 to $97 million.
The company will discuss the impact of the slowdown further when it reports second-quarter results July 31.
"While we are clearly disappointed in these estimated results, we are encouraged by the progress we are making in building our international business which saw a sequential increase in shipments and by a relatively strong month in June for bookings for domestic customers," CEO Carl Russo said in a statement.
Calix shares, which dropped 10 percent Wednesday to close at $6.48 on the New York Stock Exchange, fell an additional 21 percent in after-hours trading.
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