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Ruckus results miss as telecom service providers delay deployment

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(Globalpost/GlobalPost)

(Reuters) - Ruckus Wireless Inc reported first-quarter results that fell short of Wall Street estimates as telecom service providers in the Americas delayed deployments, and the WiFi products maker forecast current-quarter largely below expectations.

Ruckus shares fell 18 percent in after-market trading.

The company expects second-quarter adjusted earnings of 3 cents to 4 cents per share on revenue of $61 million to $64 million.

Analysts were looking for adjusted earnings of 4 cents per share on revenue of $67.1 million, according to Thomson Reuters I/B/E/S.

Net income fell to $314,000, or break-even per share, in the first quarter, from $3.7 million, or 3 cents per share, a year earlier.

Excluding items, it earned 3 cents per share, below analysts' estimates of 4 cents per share.

Revenue rose 27 percent to $57.2 million, which fell short of the $63.3 million that analysts had expected.

"Revenue was impacted by delayed deployments by several service provider customers in the Americas, as well as challenging market conditions in China," Chief Executive Selina Lo said.

Ruckus shares closed at $19.00 on the New York Stock Exchange on Monday. They have fallen 20 percent in the last three months.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Sriraj Kalluvila)

http://www.globalpost.com/dispatch/news/thomson-reuters/130508/ruckus-expects-second-quarter-below-estimates-china-demand-soft