Why Acme Packet Got Crushed

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Acme Packet (NAS: APKT) got crushed today, down by as much as 18% today, after the company reported disappointing earnings, swinging to a loss.

So what: Revenue in the second quarter declined 15% to $67.6 million, and the bottom line changed from black ink to a light shade of red. Acme Packet posted a net loss of $127 million, which rounds to $0.00 per share, much worse than the $14 million in profit a year ago.


Now what: These figures were mostly expected, as Acme Packet gave a warning a couple weeks ago on what to expect this quarter. However, the new information today is that the company is also cutting full-year outlook, and now expects revenue between $270 million and $275 million, which should result in a GAAP net loss of $0.07 to $0.11 per share. On an adjusted basis, it expects earnings per share of $0.43 to $0.47, which still doesn't compare to the Street's forecasts.

Interested in more info on Acme Packet? Add it to your watchlist byclicking here..

The article Why Acme Packet Got Crushed originally appeared on Fool.com.

Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Acme Packet. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners