Redback Networks trimmed its revenue expectations for the quarter ended 31-Dec-2006, saying it now expects revenue of approximately $64 million.
“The fourth quarter was our largest quarter ever for the SmartEdge products as we experienced substantial quarter over quarter revenue growth and the acquisition of several new large SmartEdge customers,” said Kevin DeNuccio, president and chief executive officer, Redback Networks. “Unfortunately we failed to meet our revenue targets due to, among other reasons, distribution channel disruptions caused by the timing of our proposed acquisition by Ericsson, and lower than expected revenue from our older SMS product line as we transitioned our largest SMS customers in the fourth quarter to our SmartEdge products. We expect that substantially all of the delayed purchases will become revenue in 2007.”http://www.redback.com
- On 20-Dec-2006, Ericsson announced plans to acquire Redback Networks for $2.1 billion, or $25 dollars per Redback share.
