Applied Innovation Inc. Monday warned it expects total sales for the fourth quarter to be in the range of US$10 million to $13 million, down from pro forma sales of $22.3 million for the same period last year.
The company, which manufactures network management software, says that as a result of the decrease in sales and associated revenues, it will report a loss of up to $2.3 million for the fourth quarter of 2001. The loss is equivalent to 15 cents per share.
Applied Innovation said it attributes the loss to further cutbacks in capital spending by the telecommunications industry's largest service providers.
Despite the drop in product sales, the company said it expects fourth-quarter service sales to be higher than the $2.5 million generated in the same quarter last year. Service sales are expected to be less than the $3.8 million posted in the third quarter of 2001, however.
The company also said it does not expect any integration sales in the fourth quarter of 2001, even though it recently completed the first sale of its high-speed optical Ethernet transport products via LuxPath Networks, a division of Applied Innovation.
In November, three LuxPath LuxConnect products were deployed into a service provider network. The company says that additional test deployments are in progress.
LuxPath Networks develops broadband gigabit Ethernet aggregation and transport products.