Procom Shares Drop 30% on Disappointing Earnings

Procom Technology Inc. shares fell 30% after the maker of computer disk drives warned that earnings for the fiscal second quarter won’t meet expectations.

Procom shares fell $3.31 to $7.81 on volume of 1.19 million shares, 17 times the three-month daily average. The stock was the fourth-largest percentage decliner on U.S. exchanges.

Sales will fall because of “severe price erosion” for the company’s disk drives and CD-ROM drives, Chief Executive Alex Razmjoo said. He also cited decreased demand among customers with a large presence in Southeast Asia.

Procom expects net income of $1.5 million to $1.9 million, or 14 cents to 17 cents a share, compared with 20 cents in the year-earlier period. Analysts had estimated that the company would post earnings of 22 cents a share for the three months.

The Irvine-based company expects revenue of $23 million to $24 million, compared with $26.6 million in the year-earlier period.

Procom will announce results Feb. 24 for the quarter ending Saturday.