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Technology Stocks : MMC Networks Inc (MMCN) -- Ignore unavailable to you. Want to Upgrade?

To: fellow who wrote (471)	11/16/1999 2:18:00 PM
From: Snowshoe	Read Replies (1) \| Respond to of 507

From Briefing.com... 08:32 ET ****** MMC Networks (MMCN) 22 -1 1/8: There isn't much room for error in the technology business. After the close Monday, MMC Networks (MMCN), a developer and supplier of Network Processors, warned that revenues and profits for the fourth quarter will be well below expectations. MMCN said that Cisco, their largest customer, just isn't buying enough product. MMCN says this is because "of a product transition which occurred faster than anticipated and the delay of a new product program." Sales to Cisco will be off about 50% this quarter compared to last quarter, and overall revenue is expected to be in the $11 to $13 million range. That would be down from the $23.1 million revenue in the third quarter and $13.6 million in the year ago third quarter. MMCN also says it will post a loss this quarter for the first time in years, rather than the $0.10 profit per share expected. This isn't entirely out of the blue. In late August, the stock had reached a record 57. Then, on August 31, MMCN put out a press release that said IBM's exit from the LAN switch/router business might result in a 5 to 10 percent sequential decline in fourth quarter 1999 revenues. The stock plunged to almost 20, then bounced to about 33 and has been drifting lower since then. Now that it is known that the problems are not just related to one customer, however, but rather to product development, a bounce is not worth betting on. Instead, traders are likely to pass on this stock, looking for something more active. Who knows when the company, or the stock, will get back on track? - DG