Making money has always been a major problem for the Minneapolis, Minnesota company which has found no problem growing sales rapidly. While it previously held out the prospect of pro forma earnings per share in the $0.02 to $0.05 range, it now holds forward the prospect of losses in the range of $0.03 to $0.05.
CEO Tom Hudson said it continued to see strong demand for its FC/9000 and FICON director product and both port and unit shipments increased by over 70% on the first quarter of last year.
However other CNT product revenues were $5m under expectations, partly due to managed service contracts that will be recognized over the next few years. Hudson said there was also some lumpiness in demand driven by complex customer decision-making.
Hudson also claimed that CNT received orders for products with new features that weren’t certified by quarter end and orders late in the quarter that could not be fulfilled due to inventory lead times. He insisted that these orders will be recognized as revenue in the second and third quarters.
CNT’s shares fell 13.17% to $6.20 on the news, valuing the company at just $171.8m, which will make it a tempting prospect to those companies who can take the steps necessary to make it profitable.
This article is based on material originally published by ComputerWire
