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Markets Hammered to Start 2nd Quarter

Technology: Profit warnings from a pack of Internet firms signal that the sector's recovery isn't imminent.

April 03, 2001|KAREN KAPLAN | TIMES STAFF WRITER

* BroadVision Inc., a Redwood City maker of software used for buying and selling goods online, said first-quarter sales lagged estimates and it will fire about 325 workers, or 15% of its employees. BroadVision expects a loss before one-time expenses of 14 cents a share to 16 cents on sales of $85 million to $90 million, Chief Executive Pehong Chen said. The company was expected to earn 2 cents a share on sales of $134 million, the average estimate of analysts polled by First Call/Thomson Financial. BroadVision, whose products let companies tailor Web sites for individual users, said it completed fewer-than-expected contracts worth more than $1 million because of the U.S. economic slowdown. BroadVision shares lost 16%, or 84 cents, to $4.50.

* Tekelec, a Calabasas telecommunications equipment maker, said a recent bankruptcy filing by a customer prompted it to revise its fourth-quarter results, but added that the changes will not affect its 2001 outlook. Tekelec said its revised fourth-quarter results reflect the recent Chapter 11 bankruptcy filing by E.spire Communications Inc. As a result, Tekelec decided to exclude $1.8 million in fourth-quarter revenue attributable to E.spire from Tekelec's 2000 financials. Tekelec said it also has recorded a fourth-quarter charge of $2.3 million. The adjustment reduces Tekelec's total revenue for the fourth quarter by $1.8 million to $96.4 million. Tekelec shares slipped 4%, or 69 cents, to $17 on Nasdaq.31.

* Rainbow Technologies Inc. of Irvine, which makes Internet and e-commerce security software, said a "slowdown in the Internet infrastructure industry" would push its quarterly loss into the range of 7 cents to 10 cents a share. Analysts polled by IBES/Thomson Financial had expected a quarterly profit of 12 cents a share. But investors still bid Rainbow shares up 19 cents to close at $5.19 on Nasdaq.

* Alcatel, the French telecommunications equipment maker, said it plans to cut about 1,100 U.S. employees, or just under 5% of the jobs in the company's largest market, citing slowing customer demand. Paris-based Alcatel, which employs more than 130,000 staff worldwide, warned in March that it was suffering from soft handset sales in Europe, but has stood by earnings forecasts for the first quarter and full year. It said 800 of the 1,100 positions affected are full-time jobs, including the trimming of 93 of the 500 jobs at the company's Petaluma operation.

*

Times wire services were used in compiling this report.

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