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Technology Stocks : Stratex Networks, Inc. (STXN)
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To: The Ox who wrote (1626)4/14/2005 8:32:22 PM
From: Czechsinthemail  Read Replies (1) of 1762
 
I agree. The weakness of the stock recently strongly suggests that some in the know were selling ahead of the announcement. Though you would assume they would have a pretty accurate tab on sales as of the end of the quarter, apparently they didn't get some of the sale figures reported to them until later.

The details of that transaction notwithstanding, I'm still upset that they didn't provide earlier guidance that they were going to miss their revenue targets. They may be fingering the volume discounts to a large customer, but that particular scapegoat only accounts for $3 million out of a revenue miss of $4 million to $6 million. Implicitly they didn't have sufficient sales elsewhere, and even without the jumbo discounted order would have missed their guidance anyway.

The silver lining is that the monstro order apparently carries over into this quarter. Who knows how big it is and what kind of revenue impact it may have for this quarter, but sales of legacy products are generally preferable to write-offs. Perhaps the $3 million lost in the Mar quarter will be made up through additional legacy sales this quarter.

The other positive is that they are maintaining prior guidance of profitability for this year, though I guess that has to be taken with some skepticism after their latest missed guidance.
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