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Aspect tumbles on warning
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January 6, 1999: 11:10 a.m. ET
Telecom company says 4Q will fall short of estimates by 9 cents, shares plummet
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NEW YORK (CNNfn) - Aspect Telecommunications Inc. stock tumbled nearly 30 percent at Wednesday's opening after the company announced that fourth-quarter earnings would be below analysts' expectations.
During the morning trading session, Aspect shed 5 points to 12-1/16.
The company said earnings for the quarter would be about 12 cents a share, 9 cents short of First Call's estimates of 21 cents a share for the period ended Dec. 31. The 12 cents a share figure is roughly 2 to 5 percent lower than results for the previous quarter.
As a result of the earnings shortcoming, Aspect (ASPT), based in San Jose, Calif., announced a change in management at the highest levels. Linda F. Johnstone will serve as interim Vice President for North America, succeeding Larry Miller, who is leaving the company.
Commenting on the disappointing earnings projection, James Carreker, chairman and chief executive officer said, "Over the past several years, we have worked to achieve steady growth and, while many parts of our business continue to perform well, our North American region is not performing to expectations."
"Accordingly, I have concluded that a management change at the top level of the North American sales organization is appropriate," he added.
The company will release complete financial results on Jan. 20.
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