Microtune stumbles on warning

By Susan Rush
From The October 3, 2002 Edition Of CED Broadband Direct

Microtune Inc. shares slipped to a new 52-week low at one point in early trading, following news that the radio frequency product maker's third-quarter results will come in below the Street's expectations.

The company will report $24 million in revenue for the third quarter, which falls short of analysts' range estimates of between $25.5 million and $28 million. It also falls short of Microtune's earlier guidance calling for revenue to increase 20 percent over the second quarter. In actuality, Microtune posted a 4 percent quarter-over-quarter increase.

Microtune also warned that it will post a wider-than-expected pro forma net loss from operations. Analysts on average were calling for a loss of 9 cents a share, according to Thomson First Call.

To cut costs, the company says it is implementing a worldwide restructuring plan. Details of how it plans to lower its cost structure were not outlined.

Final results of the quarter ended Sept. 30 will be outlined during an earnings conference call on Oct. 28. At this time, the company also intends to provide guidance for the fourth quarter.

As of 11:07 a.m. EDT, Microtune shares were shedding more than 11 percent of their value, trading at $1.66, which is well off their 52-week high of $29.45.