ADTRAN (ADTN 19.05, -3.20) has slumped 14.4% in pre-market after the company issued below-consensus guidance for the fourth quarter.
The company, which provides networking and communications equipment to service providers, private enterprises, governments, and individual users, announced that it expects to report non-GAAP fourth quarter earnings of $0.01 per share, which is well short of market expectations. ADTRAN expects to report quarterly revenue of $125.00 million, which is also below market estimates.
ADTRAN CEO Tom Stanton blamed the company's merger-related review and a slowdown in spending by a major customer for the expected shortfall. Mr. Stanton said that the merger-related review will be completed in 60 to 90 days and capital plans will be finalized at that time. Mr. Stanton also said that recent awards and trials in Tier 1 customer accounts leaves the company feeling confident about its positioning.
Looking past the fourth quarter, ADTRAN expects that first quarter revenue will be essentially in line with fourth quarter sales.
The company's fourth quarter conference call will take place on January 17 at 10:30 ET.