PairGain Technologies Stock Dips After Earnings Report

The price of PairGain Technologies Inc. shares fell 9% Thursday after the telecommunications equipment maker reported second-quarter earnings that didn’t meet analysts’ estimates.

In addition, UBS Securities Inc. in New York downgraded the company’s stock to “hold” from “buy” as it lowered PairGain’s earnings estimate this year to 63 cents a share from 68 cents.

PairGain’s stock fell $1.69 a share to close at $16.56 a share in Nasdaq trading that was three times the average daily volume over the last three months.

On Wednesday, after the stock markets closed, PairGain said net income for the second quarter rose 60% to $11.7 million, or 16 cents a share, from $7.3 million, or 10 cents, in last year’s second quarter.

The company was expected to earn 19 cents a share, according to the average estimate of 12 analysts surveyed by IBES International Inc.

Earnings at PairGain, which makes products that transmit voice and data phone calls at high speeds over traditional copper wires, have been hurt by lower prices resulting from competition with Adtran Inc., analysts said. They expect prices to fall even more in the third quarter.