Shares of Powerwave Technologies Inc. dropped about 10% in afterhours trading Monday after the company said second-quarter sales fell short of estimates and demand from a key customer was falling.
The Santa Ana maker of gear for wireless phone networks posted sales of $232.4 million for its second quarter, up 20% from the year-ago period. But analysts were looking for revenue of $247 million.
Powerwave posted net income of $12.6 million during the second quarter, including acquisition costs. Excluding one-time costs, the company would have earned $17.5 million compared to $13 million a year ago, up 35%.
Analysts were expecting income of $15.7 million.
Chief Executive Ron Buschur said during a conference call with analysts that the company is seeing sliding demand from one of its key customers in North America: Atlanta-based Cingular Wireless LLC.
Cingular also was a drag on results in the first quarter for Powerwave.
