Calix, the telecom company, dropped close to 16% in Tuesday’s premarket after it warned revenues would come in lower than expected in the second quarter.
Sales in the period are expected to reach between US$197 million and US$203 million, down from last year’s US$261 million and lower than Wall Street’s guidance of US$232.8 million.
Adjusted earnings per share of between 3 and 9 cents was also forecast by the company.
Calix’s downgrade has been attributed to a lower number of appliance shipments.
During the group’s first quarter, net profits came in at US$100,000, having posted a loss of US$6.7 million and US$9.5 million in 2023’s fourth quarter and first quarter, respectively.
Sales during the period dropped 9% year-on-year to US$227.3 million driven largely by a reduced demand from larger networks.
Demand across its client base appears to be drying up as the company said a “few” medium and large-sized customers had paused purchase orders, while smaller buyers had been waiting for government funding before signing the dotted line.