Tut Systems announces revenue warning

(Telephony) Experiencing a rippling effect from the recent financial difficulties faced by carriers, MTU broadband systems provider Tut Systems today announced it expects 2000 fourth-quarter earnings to be as much as 67% less than anticipated.

The Pleasanton, Calif.-based company said it expected revenues of $15 to 18 million for the quarter ending Dec. 31, 2000, but now foresees revenues for the fourth quarter to be $6 to 7 million. Official numbers and the company’s plan for 2001 will not be announced until Jan. 31, according to a company spokeswoman.

“Obviously we’re going to be as fiscally responsible as necessary, given the climate in the market,” the spokeswoman said.

Tut Systems cited order rescheduling and additional credit curtailing as causes for the lowered expectations.

Despite its stock value plunging from $115 close Aug. 30 to its current $5.5625, Tut Systems remains sanguine about the company’s ability to weather the telecommunication industry’s financial storm, the spokeswoman said.

“The MTU market is brand new and it’s just beginning to be deployed,” the spokeswoman said. “We believe the MTU market is only between 3 and 5 % deployed so there is a tremendous opportunity in the multi-tenant market not just in the U.S., but the rest of the world.”