BOSTON (Thomson Financial) - Share of Acme Packet Inc. tumbled to a 3-month
low on heavy volume Wednesday after the interactive communications security
company provided a disappointing fourth-quarter outlook.
The Burlington, Mass.-based company said late Tuesday that it expects
fourth-quarter adjusted earnings of 9 to 10 cents a share on revenue of $30.5
million to $32 million, compared with the mean estimates of analysts surveyed by
Thomson Financial of 10 cents a share in earnings and $32 million in revenue.
Analyst Paul Silverstein at Credit Suisse reiterated his outperform rating,
but cut his stock price target to $16 from $21.
The company said it raised its 2007 adjusted earnings estimate to 35 to 36
cents a share from 28 to 30 cents a share, and lifted its revenue outlook to
$112 million to $113.5 million from $108 million to $112 million.
Credit Suisse's Silverstein said investors are likely to be "disappointed"
with the full-year outlook as it suggests "no upside" to the fourth quarter
outlook.
For the third quarter, the company reported adjusted earnings of $6.7
million, or 10 cents a share, topping analyst forecasts of 9 cents a share.
Revenue rose 33% to $29.6 million from $22.3 million a year ago, compared with
analyst projections of $29.3 million.
The stock was down 17% at $11.15, the lowest price seen since Aug. 1. Volume
was 1.7 million shares, or more than 5 times the full-day average of about
325,500 shares.
Michael Lauenger
ml/tk1
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