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Before the market open this morning, Ditech Communications (DITC - 6-15/16)) lowered its prior earnings and revenue expectations for its third-quarter and fiscal 2001 periods.
DITC said it expects to report third-quarter revenue of between $12.5 million and $14 million, yielding pro forma results of between breakeven and a loss of 5 cents per share. The Street had been expecting a gain of 46 cents a share.
The company attributed the shortfall to delayed product shipments and slower capital expenditures by its customers. Trading on the telecommunications equipment supplier was halted for 15 minutes at the open today. The shares finally opened down by 1-3/8 points and then proceed to achieve a new annual intraday low of 6-5/8.
DITC had its initial public offering in June 1999, releasing three million shares at $11 (pre-split). A secondary offering was made in October 1999 that made available 2.25 million shares at $51.50 (pre-split). The stocked traded higher to a peak of 140-3/16 in March of 2000.
The options configuration on the stock remains at a bullishly slanted 1,759 open put positions versus 6,029 call open positions.
Just three analysts currently cover the shares, all bestowing a "buy" or better rating on DITC.