Visual Networks, Inc. (Nasdaq: VNWK) plummeted 3 31/32 to 6 27/32 on Wednesday, a decline of almost 40 percent. The fall followed the company’s announcement that third quarter revenues will amount to about half initial projections of $30 million.
The Internet traffic management company also reported that its anticipated losses will substantially exceed original estimates of 3 cents per share, and that it no longer expects to reach its revenue goal of $165 million in 2001.
Visual Networks president and CEO Scott E. Stouffer said the company’s ability to project future sales suffered primarily because of issues related to the acquisition of Avesta Technologies.
Stouffer also said the company expects to present an updated outlook to stockholders in mid-September.