Like everyone else, TSTN warns:
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Turnstone Systems warns on revenue
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 7:10 PM ET Jan 2, 2001
SANTA CLARA, Calif. (CBS.MW) -- Turnstone Systems, a provider of products and software to local phone companies, warned late Tuesday that its fourth-quarter revenue will be "substantially below" estimates.
Turnstone Systems (TSTN: news, msgs) said it expects fourth-quarter revenue of $26 million to $28 million, a level "substantially below" the company's previous estimate, due to continued weakness in its local phone company customers.
Also, Turnstone said it will take charges of $13 million to $15.5 million to increase inventory reserves and bad debt reserves.
Turnstone provides hardware and software products to local phone companies for DSL services. Shares closed Tuesday down 88 cents, or 12 percent, to $6.56.
Its operating loss will be $12 million to $14 million. Excluding charges, Turnstone will make an operating profit of $2 million to $3 million.
Analysts surveyed by First Call currently expect earnings of 6 cents a share on revenue of $41 million.
According to a company statement, Turnstone's outlook remains cautious for the next several quarters due to continued weakness among competitive local exchange carrier customers. |
