Networking switch supplier Newbridge Networks issued a profit warning yesterday blaming weak sales in Latin America and Asia.
It said its net earnings per share for its third fiscal quarter, ended 31 December 1998, will be around 17 cents - five cents less than the average estimates of analysts surveyed by First Call.
Newbridge expects revenue for the quarter to increase 25 per cent to $450 million. Full earnings per share for the quarter, including non recurring items, is expected to be 46 cents a share, compared with a loss of 82 cents per share during the same period last year.
Alan Lutz, Newbridge president and chief executive, said: "The economic slowdowns in Latin America and Asia negatively affected sales of our mature product lines. However, ATM equipment orders increased by approximately 45 per cent compared with the preceding quarter."
Newbridge has recently found itself stranded with a catalogue of outdated products - such as TDM switches - as the market demand has shifted towards IP and ATM equipment.
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