The slowdown in capital spending along with fewer orders for its wireless products led Datum Inc. on Monday to cut its second-quarter earnings forecast by as much as half.
The Irvine maker of timing and frequency supplies said in a press release that it expects quarterly revenue to be $27 million to $29 million, which would result in earnings of 10 cents to 13 cents a share. Analysts had expected the company to earn 20 cents a share, according to a survey by First Call.
For last year's second quarter, Datum earned $1.1 million, or 17 cents a share, on sales of $33.6 million.
Datum said it had expected that less capital spending would impact its wireless division, but it also found that customers, especially in Europe, were reducing or deferring purchases of its wireline synchronization products. The company said it expects softer sales through the end of the quarter as customers reduce their inventories.
The company released its lower estimates after the market closed, with Datum stock losing $1.07 to end up at $13 a share on Nasdaq.