The telecommunication supplier estimates that it will make a first quarter loss of between 10 and 12% from its initial estimate of a 4% drop, which it announced six weeks ago.
This new crash in share price now leaves the company with a downturn of 82% from their year high.
The company followed all the other major industry players and issued a press release stating we continue to feel the impact of the economic downturn in the US and are now seeing customers globally assess its effect on their businesses, said John Roth, president and CEO. Reduced and/or deferred capital spending and increased pricing pressure are resulting in lower overall revenues, particularly in the US.
The company now expects revenues in the range of $6.1 billion to $6.2 billion and a loss per share from operations between $0.10 and $0.12 for the quarter. This is below the company’s previous estimates of $6.3 billion of revenue and loss per share from operations of $0.04 provided on February 15, 2001.
The company is also planning by mid year 2001 to reduce its workforce by approximately 15,000 from the number of employees at December 31, 2000. This will leave the company with a redundancy program of around 16% of the total labor force.
This reflect a shift of telecommunications companies worldwide to concentrate on their existing infrastructure rather than updating and expansion into new technology and territories.
