Why Acme Packet Got Crushed
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.
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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