Yesterday, communications equipment
gear maker UTSI lowered its
revenue forecast for the current quarter and will post a large
net loss, citing slowing sales in China.
The company, which is heavily
dependent on sales to China, now expects a net loss of
40 cents to 45 cents per share in the fourth quarter and
revenue of $740 million to $745 million, below its previous
forecast. In October, UTSI said it expected revenue of $875
million to $885 million, with profits at a break-even level.
"The weakness was more severe than we expected," said Hong
Lu, CEO of UTSI on a conference call, citing
an overall slowing of the Chinese economy, market maturation
and lower capital spending by its customers.