Micom Communications Expects Lower Earnings
Micom Communications Corp., a Simi Valley maker of computer networking products, said last month that it expects its fiscal third-quarter earnings and revenue to fall short of last year’s levels.
Micom’s net income for the quarter that ended Dec. 31 is expected to be between $944,000 and $1.18 million, compared with a $1.42-million profit a year earlier. Its revenue for the quarter will be about $20 million to $20.5 million, down from the $21 million in revenue in the fiscal third quarter a year earlier, it said.
The company said the revenue decline was due to inventory reductions by its distributors and other sales channels, in anticipation of new Micom products scheduled to be released in the next two quarters.
The day after the announcement, Micom’s stock plunged $6 to a 52-week low of $8.25 on the Nasdaq market.