By Ben Glickman
Shares of Cambium Networks fell after the company said third-quarter revenue would be lower than expected and suspended its full-year guidance.
The stock was down 19% to $6.40 in post-market trading, and was up 3.7% at Wednesday’s close. Shares have plunged 63% this year.
The Rolling Meadows, Ill.-based wireless infrastructure company said that based on preliminary results, it expected third-quarter revenue of $40 million to $45 million, compared with a prior outlook of $62 million to $70 million. Analysts polled by FactSet expected $64.2 million.
Cambium said the revenue decline was caused by delays in orders from the government due to the timing of budgeting and slower-than-expected business in its point-to-multi-point unit. The company also saw fewer orders from enterprise distributors and strong economic headwinds.
Cambium said it expected pressure on sales to continue as channel inventories fall. The company said third-quarter earnings would come in below the low end of the guidance range.
Write to Ben Glickman at [email protected]
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