Efficient Networks revises revenue estimates

(Telephony) To further add to the gloom that has fallen on the telecommunications and technology sector, more and more companies are finding revenue estimates and earnings to be off their mark. Yesterday, Efficient Networks revealed that its revenue estimates for the second quarter of fiscal 2001 will be far less than anticipated.

“We missed revenue for the quarter by a pretty significant amount,” said Greg Langdon, vice president of marketing for Efficient Networks. “To miss revenue by one-third is never good.” Rather than attributing the misestimate to customer’s failure to pay as many other companies are, Langdon pointed to sales not coming through in the quarter as anticipated.

But Efficient is not alone in the need to revise revenue. Others such as the once apparently bulletproof Cisco have been forced to do the same. Additionally, Cisco’s stock has continued to tumble even further after investor concerns that the company may not meet its earnings forecast.

As a saving grace for many companies, though, the Fed cut interest rates today giving the markets a strong boost. Cisco was up 6 13/16 to 40 1/8 at 2:30 EDT. Efficient was down 3 21/32 to 8 21/32.