Airspan Networks, which makes communications network equipment, plunged in after-session trading Wednesday after it released a first-quarter outlook below analyst expectations, an Associated Press report said.
The Associated Press report quoted the company as saying that it expected sales of $20 million to $21 million in the first quarter, while analysts polled by Thomson Financial expect sales of $25.5 million, on average.
Shares rose 1 cent to close at $1.45. They plunged 17% to $1.20 in after-session trading following the release of the first-quarter outlook, the report said.
The Associated Press report further quoted CEO Eric Stonestrom as saying that telecom equipment companies typically experience a weak first quarter compared with the fourth quarter.
He also said that the company was investing in new mobile network services that require research investment and will not contribute significantly to sales in the first half of the year.