NEW YORK (AP) — Shares of phone and data network equipment maker Acme Packet fell on Friday after the company reported a second-quarter loss due to a slowdown in spending by North American service providers and lowered its outlook for the year.
The second-quarter results were in line with Acme's lowered forecast earlier this month, but guidance disappointed investors and the company's shares fell 12 percent in midday trading.
There have been delays in implementing a new system for phone calls that is considered "high definition" audio, called voice over LTE or VoLTE, by AT&T and Verizon due to the complexity and cost issues of the service, said Stifel Nicolaus analyst Sanjiv Wadhwani. The delays are is pressuring Acme's results.
Until the services are implemented — probably the second half of 2013 — Acme's results will be constrained, Wadhwani said. He kept his "Hold" rating on the stock.
The Bedford, Mass.-based company reported late Thursday that its loss for the April-to-June quarter totaled $127,000, or break-even per share. That compares with earnings of $14 million, or 20 cents per share, last year.
Excluding one-time items, net income totaled 13 cents per share. Analysts expected net income of 14 cents per share, according to FactSet.
Revenue fell 15 percent to $67.6 million from $79.7 million last year. Analysts expected revenue of $68.6 million.
Earlier this month Acme predicted adjusted net income of 12 or 13 cents per share on revenue of $66 million to $68 million.
Acme Packet lowered its outlook for the year. It now expects net income, excluding items, to be 43 cents to 47 cents per share on revenue of $270 million to $275 million.
Previously, the company had forecast adjusted net income of 91 cents to 95 cents for the year on revenue of about $338 million, but it had said that outlook was under review.
Before the latest guidance cut, analysts had been forecasting adjusted net income of 76 cents a share and revenue of $302.6 million.
Acme Packet's shares fell $1.67, or 9 percent, to $14.68 in afternoon trading, after earlier reaching a 52-week low of $13.26. With Friday's decline, the stock is down about 53 percent since the beginning of the year.