Networking company Adaptec issued a profit warning on Friday, prompting a stock collapse that wiped out almost half of the company?s value within a few hours.
The bandwidth technology specialist said it expected profit for its third quarter, which ended on 31 December, to reach around $27 million rather than the $69 million analysts expected. Although Adaptec expected turnover of around $250 million, which represents a small increase, that figure is down from its Q1 and Q2 so traders sold Adaptec shares in bulk. The company?s share price plummeted from over $35 a share to around $21.
The company insisted that its warning was subject to change but investment companies pointed to falling US sales as the main reason to be pessimistic about Adaptec?s future. Adaptec would not comment until its results are released in two weeks? time.
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