Redback Says Loss Will Be Greater Than Forecast

Redback Networks Inc. said its second-quarter loss will be much deeper than forecast because phone and Internet companies trimmed orders for its networking equipment. Its shares dropped 33% in extended trading on the news, after closing up 81 cents at $11.31 on Nasdaq.

San Jose-based Redback said it will have an operating loss of 27 cents to 32 cents a share for the quarter ending Saturday, with much lower-than-expected sales of $55 million to $60 million. In April, the company said second-quarter sales would match the first quarter’s $90.9 million. Analysts were expecting a loss of 11 cents, according to First Call/Thomson Financial.

Chief Financial Officer Dennis Wolf said that although Redback hasn’t completed its 2001 forecasts, “current analysts’ estimates for the fiscal year are too high.”