Redback third quarter sales fall

Redback Networks yesterday revealed after the market close that its sales for the third quarter were down 53% from the same quarter last year. On a positive note, Redback’s net loss narrowed from the year ago quarter.

“Customers are waiting to evaluate the streamliner technology,” said Kevin DeNuchio, regarding the company’s $17.4 million in revenue.

For Redback, its partnership with Nokia proved the most fruitful in the quarter and accounted for over 15% of the company’s revenue, according to DeNuchio.

Other significant customers in the quarter were Shanghai Telecom and British Telecom.

In the year ago quarter, Redback had $37 million in revenue and in the second quarter of this year it recorded revenue of $40.1 million. Redback posted a third quarter net loss of $52.9 million or $0.30 per share. That sharply contrasts to the $3.2 billion, $21.71 per share loss a year ago.

But things may look better for Redback’s fourth quarter.

“Q4 will be up significantly as the next-generation SMS platform ships,” DeNuchio said. “We expect to see revenue increase,” said DeNuchio, adding that the revenue should bounce above $30 million in the next quarter.