PairGain Technologies Inc, the Tustin, California-based telecoms equipment manufacturer, has reported a third-quarter net loss of $4.2m on revenue down 33% at $51.2m, compared to net income of $12m, or $0.16 per share, in the year-ago quarter. The loss amounted to $0.06 per share, a penny worse than the First Call consensus. Gross margins slipped to 35% in the quarter compared to 41% in the prior quarter. The company said the decrease is the result of continued reduction in average selling prices and increased manufacturing variances due to the lower volumes in the current quarter. Nine-month net income plunged 97% to $1.1m, from $35.9m last year, on revenue down $173.3m. Earnings per share fell to $0.01 from $0.48. Nine-month results include a $1.5m charge for the write-off of a long-term investment.
