Tuesday, October 3, 2006

Ikanos Cuts Q3/Q4 Outlook

Citing product delays and weakness in its markets, Ikanos Communications cut its revenue expectation for Q3 and outlook for Q4.
Ikanos now expects Q3 revenue approximately $36 to $37 million, compared to previously issued guidance of between $40 to $43 million. Additionally, the company announced preliminary revenue estimates for its fourth quarter to be approximately $24 to $26 million.

"While we had orders for our fourth generation and newly released fifth generation chipsets in Q3, our shipments of these solutions were limited due to product delays and manufacturing constraints. Looking to our fourth quarter, we believe that revenue will be affected due to the general weakness in the overall communications sector and some deployment delays. Additionally, carriers in Japan are currently working through their existing equipment levels thus impacting our Q4 revenue. We believe this will largely be resolved by the end of the year," said Rajesh Vashist, chairman and CEO of Ikanos Communications.


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