Investors Hammer Powerwave SharesTuesday, October 18, 2011
Shares of Powerwave Technologies Inc. plummeted in afterhours trading Tuesday after the Santa Ana company made a drastic cut on its revenue expectations for the recently ended quarter.
Investors sent Powerwave shares down nearly 35% in extended trading to a market value of about $231 million.
Powerwave makes antennas, filters and other equipment for cell phone towers.
Its devices capture and boost radio signals between cell phones and base stations inside towers.
The company cited a “significant” slowdown in spending by North American network operators and the stalled merger between AT&T Inc. in Dallas and Bellevue, Wash.-based T-Mobile USA Inc., the U.S. wireless operation of Deutsche Telekom AG.
It also said it’s seeing less demand from its manufacturing customers, along with weakness in international markets.
The company said it will likely have revenue between $75 million to $79 million for its third quarter, which ended Oct. 2
Wall Street analysts on average had expected revenue between $162 million and $175 million.
“All of these factors, combined together, have had a significant impact on our third quarter revenues,” said Powerwave President and Chief Executive Ronald Buschur.
Powerwave is scheduled to report earnings for its third quarter on Nov. 1.