Newbridge Networks chief operating officer and president Alan Lutz resigned today after the vendor issued a second quarter profit warning, its seventh such announcement in the past three years.
Newbridge shares had fallen 23 per cent to $16 by 5pm today UK time, as market watchers questioned the vendor's long term viability as an independent supplier.
The news throws into doubt Newbridge's recent claim that it had solved the supply chain woes it blamed for much of its poor performance in the past.
Newbridge chief executive Terrence Matthews described the quarter as "a disappointment" but insisted the company still had a number of important strengths.
"Despite the setback this quarter, the company's ATM+IP or WAN packet switching revenues were up approximately 40 per cent compared with a year ago," Matthews said.
"I am working with the senior team of Newbridge to finalise an action plan that leverages these core strengths of the company and addresses issues that require attention, primarily sales effectiveness and our ability to scale customer facing resources," he said.
Newbridge Europe Middle East and Africa general manager Pearse Flynn has replaced Lutz in the COO role.
Newbridge now expects turnover of around $480 million for its second quarter to 31 October, with earnings of $0.08 to $0.10 a share, excluding acquisition related and non-recurring items.
Today's plummeting share price is a far cry from its year high of $39 7/8.
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