Sync Research Stock Sinks in Wake of Reported Losses
IRVINE — Sync Research stock slumped Tuesday, a day after the networking products firm said it will report a loss of between $3.7 million and $4.5 million for the third quarter ending Sept. 30.
The stock tumbled 27%, or $1.31 a share, to close at $3.63 in heavy trading on the Nasdaq market. The stock had moved as low as $3.50 earlier in the day.
Sync said it expects third-quarter losses of 21 cents to 26 cents per share and lower-than-expected revenue of $5.7 million to $6.3 million.
Wall Street analysts had expected the Irvine-based company to post a loss of 11 cents.
“Clearly we are disappointed with these results and, since the market space we serve has not yet accelerated, we will be taking additional actions to maintain our strong balance sheet,†Roger Dorf, Sync president and chief executive, said in a statement.
The company will draw up a plan for cutting operating costs and making better use of its resources in the next few weeks, and has already included expenses associated with the plan in its projections, Dorf said.
