RESEARCH TRIANGLE PARK, N.C. (AP) — Harris Stratex Networks reduced the high end of its revenue forecast late Monday and said it would record a fiscal third-quarter charge of $30 million to $35 million.
The wireless network equipment maker said it expects revenue of between $150 million and $160 million for the quarter ended April 3. In February, the Research Triangle Park, N.C.-based company projected revenue between $150 million and $170 million for the period.
Analysts expect revenue of $159.6 million for the quarter, according to a survey by Thomson Reuters.
Harris Stratex also said it expects a jump in operating expenses of between $5 million and $7 million due primarily to an increase in bad debt provision and added expenses associated with the recent acquisition of Telsima Corp., a provider of broadband wireless networks products.
Harris Stratex announced last month it bought the Sunnyvale, Calif.-based Telsima for $12 million in cash.
Harris Stratex's expected non-cash third-quarter charge of $30 million to $35 million is related to provisions for obsolete inventory and write-downs of property, plant, manufacturing and test equipment, the company said.
Harald Braun, president and chief executive of Harris Stratex, said the company has performed well, though the weak economy and credit markets "have made it more difficult to forecast with assurance."
Harris Stratex Networks is scheduled to release its third-quarter results on May 5.